Reliable Repairs and Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations:

Reliable Repairs and Service
Unadjusted Trial Balance
April 30, 2018
	Debit Balances		Credit Balances
Cash	12,830
Accounts Receivable	85,210
Supplies	20,530
Equipment	430,000
Accounts Payable			20,020
Unearned Fees			22,590
Common Stock			55,000
Retained Earnings			240,000
Dividends	16,940
Fees Earned			513,300
Wages Expense	119,090
Rent Expense	90,850
Utilities Expense	65,190
Miscellaneous Expense	10,270
	850,910		850,910

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

Required:

• Fees earned but unbilled on April 30 were $9,290.
• Supplies on hand on April 30 were $7,580.
• Depreciation of equipment was estimated to be $12,830 for the year.
• The balance in unearned fees represented the April 1 receipt in advance for services to be provided. During April $17,850 of the services was provided.
• Unpaid wages accrued on April 30 were $1,640.

1. Journalize the adjusting entries necessary on April 30, 2018.

a.
b.
c.
d.
e.

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

Revenues	$
Expenses
Net income	$

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

Revenues	$
Expenses
Net income	$

4. Determine the effect of the adjusting entries on Retained Earnings. Retained Earnings by $.__________