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.
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.
