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	12,030
Accounts Receivable	79,860
Supplies	19,240
Equipment	464,530
Accounts Payable			18,760
Unearned Fees			21,170
Nancy Townes, Capital			338,000
Nancy Townes, Drawing	15,880
Fees Earned			481,100
Wages Expense	111,620
Rent Expense	85,150
Utilities Expense	61,100
Miscellaneous Expense	9,620
	859,030		859,030

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

Required:

Fees earned but unbilled on June 30 were $8,710.

Supplies on hand on June 30 were $7,110.

Depreciation of equipment was estimated to be $12,030 for the year.

The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June $16,720 of the services was provided.

Unpaid wages accrued on June 30 were $1,540.

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

a.

Accounts Receivable

Fees Earned

b.

c.

c.
d.
e.

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 by $.