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.

Instructions
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 Amy Wolf, Capital.

Transcribed Image Text:

Electro Repairs & Service Unadjusted Trial Balance June 30, 2014 Debit Credit Balances Balances Cash 13,800 90,000 Accounts Receivable.. Supplies... Equipment.... Accounts Payable Unearned Fees ... Amy Wolf, Capital Amy Wolf, Drawing. Fees Earned...... 21,600 154,800 21,000 24,000 162,000 18,000 393,000 Wages Expense Rent Expense . Utilities Expense . Miscellaneous Expense 126,000 96,000 69,000 10,800 600,000 600,000