Milbank Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations: Milbank Repairs & ServiceUNADJUSTED TRIAL BALANCEJune 30, 20Y4 ACCOUNT TITLEDEBITCREDIT1Cash10,550.00 2Accounts Receivable67,990.00 3Supplies16,140.00 4Equipment113,140.00 5Accounts Payable 16,230.006Unearned Fees 17,950.007Nancy Townes, Capital 118,770.008Nancy Townes, Drawing13,430.00 9Fees Earned 294,730.0010Wages Expense94,500.00 11Rent Expense72,100.00 12Utilities Expense51,560.00 13Miscellaneous Expense8,270.00 14Totals447,680.00447,680.00 For preparing the adjusting entries, the following data were assembled:•Fees earned but unbilled on June 30 were $10,110.•Supplies on hand on June 30 were $4,650.•Depreciation of equipment was estimated to be $6,490 for the year.•The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June, $14,910 of the services were provided.•Unpaid wages accrued on June 30 were $4,960. Required:1.Journalize the adjusting entries necessary on June 30, 20Y4. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.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.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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, 20Y4

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	10,550.00
2	Accounts Receivable	67,990.00
3	Supplies	16,140.00
4	Equipment	113,140.00
5	Accounts Payable		16,230.00
6	Unearned Fees		17,950.00
7	Nancy Townes, Capital		118,770.00
8	Nancy Townes, Drawing	13,430.00
9	Fees Earned		294,730.00
10	Wages Expense	94,500.00
11	Rent Expense	72,100.00
12	Utilities Expense	51,560.00
13	Miscellaneous Expense	8,270.00
14	Totals	447,680.00	447,680.00

For preparing the adjusting entries, the following data were assembled:

•	Fees earned but unbilled on June 30 were $10,110.
•	Supplies on hand on June 30 were $4,650.
•	Depreciation of equipment was estimated to be $6,490 for the year.
•	The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June, $14,910 of the services were provided.
•	Unpaid wages accrued on June 30 were $4,960.

	Required:
1.	Journalize the adjusting entries necessary on June 30, 20Y4. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
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.

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