Chapter 3 HW: 3

Milbank Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations:

Milbank Repairs & Service
Unadjusted Trial Balance
June 30, 2019
	Debit Balances		Credit Balances
Cash	12,890
Accounts Receivable	85,580
Supplies	20,620
Equipment	488,590
Accounts Payable			20,110
Unearned Fees			22,680
Nancy Townes, Capital			353,000
Nancy Townes, Drawing	17,010
Fees Earned			515,540
Wages Expense	119,610
Rent Expense	91,250
Utilities Expense	65,470
Miscellaneous Expense	10,310
	911,330		911,330

For preparing the adjusting entries, the following data were assembled:

Required:

• Fees earned but unbilled on June 30 were $9,330.
• Supplies on hand on June 30 were $7,620.
• Depreciation of equipment was estimated to be $12,890 for the year.
• The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June $17,920 of the services was provided.
• Unpaid wages accrued on June 30 were $1,650.

Question Content Area

1. Journalize the adjusting entries necessary on June 30, 2019.

2. Determine the revenues, expenses, and net income of Milbank Repairs & Service before the adjusting entries.

3. Determine the revenues, expenses, and net income of Milbank Repairs & Service after the adjusting entries.

4. Determine the effect of the adjusting entries on Nancy Townes, Capital.

a. b. 10 C. d. o e. $ Revenues Expenses $ $ Net income Revenues $ Expenses Net income ta Nancy Townes, Capital by $