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

 

For preparing the adjusting entries, the following data were assembled:
 • Fees earned but unbilled on June 30 were $7,380.
 • Supplies on hand on June 30 were $2,775.
 • Depreciation of equipment was estimated to be $11,000 for the year.
 • The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June, $16,500 of the services were provided.
 • Unpaid wages accrued on June 30 were $3,880.
 Instructions
 1. Journalize the adjusting entries necessary on June 30, 2019.
 2. Determine the revenues, expenses, and net income of Milbank Repairs & Service before
 the adjusting entries.
 3. Determine the revenues, expenses, and net income of Milbank Repairs & Service after the adjusting entries.
 4. Determine the effect of the adjusting entries on Nancy Townes, Capital.

Transcribed Image Text:

Milbank Repalrs & Service Unadjusted Trial Balance June 30, 2019 Deblt Balances Credit Balances 15,750 18,000 171,500 Accounts Payable 294,750 Utilities Expense.... nse 51,750 500,000 500,000