Electro Repairs & Service, an electronics repair store, prepared the unadjusted trial balance shown below at the end of its first year of operations.

For preparing the adjusting entries, the following data were assembled:
a. Fees earned but unbilled on June 30 were $12,700.
b. Supplies on hand on June 30 were $4,175.
c. Depreciation of equipment was estimated to be $7,400 for the year.
d. The balance in unearned fees represented the June 1 receipt in advance for services to be provided. Only $14,200 of the services was provided between June 1 and June 30.
e. Unpaid wages accrued on June 30 were $1,100.

1. Journalize the adjusting entries necessary on June 30, 2014.
2. Determine the revenues, expenses, and net income of Electro Service & Repairs before the adjusting entries.
3. Determine the revenues, expense, and net income of Electro Service & Repairs after the adjusting entries.
4. Determine the effect of the adjusting entries on RetainedEarnings.

  • CreatedFebruary 28, 2014
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