1. Lowtax and Co., an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations:

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

• Fees earned but unbilled on April 30 were $10,850.
• Supplies on hand on April 30 were $6,670.
• Depreciation of equipment was estimated to be $5,470 for the year.
• The balance in unearned fees represented the April 1 receipt in advance for services to be provided. During April, $18,000 of the services were provided.
• Unpaid wages accrued on April 30 were $7,700.