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

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	10,350.00
2	Accounts Receivable	67,500.00
3	Supplies	16,200.00
4	Equipment	166,100.00
5	Accounts Payable		15,750.00
6	Unearned Fees		18,000.00
7	Nancy Townes, Capital		171,500.00
8	Nancy Townes, Drawing	13,500.00
9	Fees Earned		294,750.00
10	Wages Expense	94,500.00
11	Rent Expense	72,000.00
12	Utilities Expense	51,750.00
13	Miscellaneous Expense	8,100.00
14	Totals	500,000.00	500,000.00

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

Fees earned but unbilled on June 30 were $7,380.

Supplies on hand on June 30 were $2,775.

Depreciation of equipment was estimated to be $11,000 for the year.

The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June, $16,500 of the services were provided.

Unpaid wages accrued on June 30 were $3,880.

Required: 1. Journalize the adjusting entries necessary on June 30, 2019. Refer to the Chart of Accounts for exact wording of account titles.

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.

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

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Adjusting Entries
2
3
4
5
6
7
8
9
10
11

Solution

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Adjusting Entries
2
3
4
5
6
7
8
9
10
11

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

Before Adjusting Entries

1	Revenues
2	Expenses
3	Net income

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

After Adjusting Entries

1	Revenues
2	Expenses
3	Net income

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

The adjusting entries net income by .