Reliable 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:
a. Fees earned but unbilled on April 30 were $9,850.
b. Supplies on hand on April 30 were $4,660.
c. Depreciation of equipment was estimated to be $6,470 for the year.
d. The balance in unearned fees represented the April 1 receipt in advance for services to be provided. During April, $15,000 of the services were provided.
e. Unpaid wages accrued on April 30 were $5,200.
Instructions
1. Journalize the adjusting entries necessary on April 30, 2016.
2. Determine the revenues, expenses, and net income of Reliable Service & Repairs before the adjusting entries.
3. Determine the revenues, expense, and net income of Reliable Service & Repairs after the adjusting entries.
4. Determine the effect of the adjusting entries on Karin Bickle, Capital.

Transcribed Image Text:

Rellable Repairs& Service Unadjusted Trial Balance Aprll 30, 2016 Deblt Balances Credit Balances Accounts Receivable. Supplies...._. . . Accounts Payable . 67,500 16,200 16,100 15,750 18,000 121,500 . Unearned Fees Karin Bickle, Drawing..._ . . Fees Earned.. Rent Expense... . Miscellaneous Expense 294,750 72,000