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	10,800.00
2	Accounts Receivable	67,270.00
3	Supplies	16,390.00
4	Equipment	115,170.00
5	Accounts Payable		15,830.00
6	Unearned Fees		17,930.00
7	Nancy Townes, Capital		117,930.00
8	Nancy Townes, Drawing	13,860.00
9	Fees Earned		297,710.00
10	Wages Expense	94,430.00
11	Rent Expense	71,780.00
12	Utilities Expense	52,100.00
13	Miscellaneous Expense	7,600.00
14	Totals	449,400.00	449,400.00

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

	Fees earned but unbilled on June 30 were $9,950.
	Supplies on hand on June 30 were $4,810.
	Depreciation of equipment was estimated to be $6,130 for the year.
	The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June, $15,250 of the services were provided.
	Unpaid wages accrued on June 30 were $5,100.

	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.

CHART OF ACCOUNTSMilbank Repairs & ServiceGeneral Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Equipment
15	Accumulated Depreciation-Equipment

	LIABILITIES
21	Accounts Payable
22	Wages Payable
23	Unearned Fees

	EQUITY
31	Nancy Townes, Capital
32	Nancy Townes, Drawing
33	Dividends

	REVENUE
41	Fees Earned

	EXPENSES
51	Wages Expense
52	Rent Expense
53	Supplies Expense
54	Depreciation Expense
56	Utilities Expense
59	Miscellaneous Expense

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

PAGE 10

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

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 .