Milbank Repairs & Service

Unadjusted Trial Balance

June 30, 2019

Debit

Balances Credit

Balances

Cash 14,150

Accounts Receivable 93,980

Supplies 22,650

Equipment 538,900

Accounts Payable 22,080

Unearned Fees 24,910

Nancy Townes, Capital 390,000

Nancy Townes, Drawing 18,680

Fees Earned 566,150

Wages Expense 131,350

Rent Expense 100,210

Utilities Expense 71,900

Miscellaneous Expense 11,320

1,003,140 1,003,140

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

Fees earned but unbilled on June 30 were $10,240.

Supplies on hand on June 30 were $8,360.

Depreciation of equipment was estimated to be $14,150 for the year.

The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June $19,680 of the services was provided.

Unpaid wages accrued on June 30 were $1,810.

Required:

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

a.

b.

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 $.