Question

My CourSUs OBJ. 2, 3, 4, 5 Adjusting entries PR 3-3A Milbank Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations: Milbank Repairs & Service Unadjusted Trial Balance June 30, 2019 Credit Debit Balances Balances 10,350 Cash 67,500 16,200 166,100 Accounts Receivable. Supplies. Equipment.. Accounts Payable Unearned Fees 15,750 18,000 171,500 Nancy Townes, Capital Nancy Townes, Drawing 13,500 294,750 Fees Earned.. 94,500 72,000 I.. Wages Expense Rent Expense Utilities Expense Miscellaneous Expense 51,750 8,100 500,000 500,000 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 June 30, 2019. 1. Journalize the adjusting entries necessary on 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. A
have to do adjusting entries and complete the instructions.

Answer 1

1	Adjusting entries	Debit	Credit
30-Jun	Accounts receivable	7380
	Fees earned		7380
30-Jun	Supplies expense	13425	(16200-2775)
	Supplies		13425
30-Jun	Depreciation expense	11000
	Accumulated depreciation - equipment		11000
30-Jun	Unearned fees	16500
	Fees earned		16500
30-Jun	Wages expense	3880
	Wages payable		3880
		2	3
	Income statement	Before	After
	Revenue
	Fees earned	294750	318630	23880
Less	Expense
	Wages expense	94500	98380
	Rent expense	72000	72000
	Utilities expense	51750	51750
	Misc. expense	8100	8100
	Depreciation expense		11000
	Supplies expense		13425
	Total expense	226350	254655	28305
	Net income	68400	63975	-4425
4	Nancy Townes capital would decrease by 4425