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, 20Y4.
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 Repairs & Service Unadjusted Trial Balance June 30, 20Y4 Debit Credit Balances Balances Cash... 10,350 Accounts Receivable.. 67,500 Supplies... Equipment.... Accounts Payable.. Unearned Fees.. Nancy Townes, Capital.. Nancy Townes, Drawing. Fees Earned.. 16,200 166,100 15,750 18,000 171,500 13,500 294,750 Wages Expense.. Rent Expense.. 94,500 72,000 Utilities Expense... Miscellaneous Expense. 51,750 8,100 500,000 500,000