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 RetainedEarnings.

Transcribed Image Text:

Electro Repairs & Service Unadjusted Trial Balance June 30, 2014 Debit Balances Credit Balances 154,800 21,000 24,000 40,000 122,000 393,000 .10,800 600,000 600,000