Question
Milbank Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations: Milbank Repairs
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 | 13,300 | |||
Accounts Receivable | 88,310 | |||
Supplies | 21,280 | |||
Equipment | 498,930 | |||
Accounts Payable | 20,750 | |||
Unearned Fees | 23,410 | |||
Nancy Townes, Capital | 359,000 | |||
Nancy Townes, Drawing | 17,560 | |||
Fees Earned | 532,000 | |||
Wages Expense | 123,420 | |||
Rent Expense | 94,160 | |||
Utilities Expense | 67,560 | |||
Miscellaneous Expense | 10,640 | |||
935,160 | 935,160 |
For preparing the adjusting entries, the following data were assembled:
Required:
- Fees earned but unbilled on June 30 were $9,630.
- Supplies on hand on June 30 were $7,860.
- Depreciation of equipment was estimated to be $13,300 for the year.
- The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June $18,490 of the services was provided.
- Unpaid wages accrued on June 30 were $1,700.
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.
Revenues | |
Expenses | |
Net income |
3. Determine the revenues, expenses, and net income of Milbank Repairs & Service after the adjusting entries.
Revenues | |
Expenses | |
Net income |
4. Determine the effect of the adjusting entries on Nancy Townes, Capital. Nancy Townes, Capital ________________
1. Journalize the adjusting entries necessary on June 30, 2019. 10 b. c. d. eStep by Step Solution
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