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 10,350.00 2 Accounts Receivable 67,500.00 3 Supplies 16,200.00 4 Equipment 166,100.00 5 Accounts Payable 15,750.00 6 Unearned Fees 18,000.00 7 Nancy Townes, Capital 171,500.00 8 Nancy Townes, Drawing 13,500.00 9 Fees Earned 294,750.00 10 Wages Expense 94,500.00 11 Rent Expense 72,000.00 12 Utilities Expense 51,750.00 13 Miscellaneous Expense 8,100.00 14 Totals 500,000.00 500,000.00 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. 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. CHART OF ACCOUNTS Milbank Repairs & Service General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Equipment 15 Accumulated Depreciation-Equipment LIABILITIES 21 Accounts Payable 22 Wages Payable 23 Unearned Fees EQUITY 31 Nancy Townes, Capital 32 Nancy Townes, Drawing 33 Dividends REVENUE 41 Fees Earned EXPENSES 51 Wages Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 56 Utilities Expense 59 Miscellaneous Expense 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. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Adjusting Entries 2 3 4 5 6 7 8 9 10 11 2. Determine the revenues, expenses, and net income of Milbank Repairs & Service before the adjusting entries. Before Adjusting Entries 1 Revenues 2 Expenses 3 Net income 3. Determine the revenues, expenses, and net income of Milbank Repairs & Service after the adjusting entries. After Adjusting Entries 1 Revenues 2 Expenses 3 Net income 4. Determine the effect of the adjusting entries on Nancy Townes, Capital. The adjusting entries ( increase or decrease) net income by $ ( ).

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 10,350.00 2 Accounts Receivable 67,500.00 3 Supplies 16,200.00 4 Equipment 166,100.00 5 Accounts Payable 15,750.00 6 Unearned Fees 18,000.00 7 Nancy Townes, Capital 171,500.00 8 Nancy Townes, Drawing 13,500.00 9 Fees Earned 294,750.00 10 Wages Expense 94,500.00 11 Rent Expense 72,000.00 12 Utilities Expense 51,750.00 13 Miscellaneous Expense 8,100.00 14 Totals 500,000.00 500,000.00 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. 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. CHART OF ACCOUNTS Milbank Repairs & Service General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Equipment 15 Accumulated Depreciation-Equipment LIABILITIES 21 Accounts Payable 22 Wages Payable 23 Unearned Fees EQUITY 31 Nancy Townes, Capital 32 Nancy Townes, Drawing 33 Dividends REVENUE 41 Fees Earned EXPENSES 51 Wages Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 56 Utilities Expense 59 Miscellaneous Expense 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. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Adjusting Entries 2 3 4 5 6 7 8 9 10 11 2. Determine the revenues, expenses, and net income of Milbank Repairs & Service before the adjusting entries. Before Adjusting Entries 1 Revenues 2 Expenses 3 Net income 3. Determine the revenues, expenses, and net income of Milbank Repairs & Service after the adjusting entries. After Adjusting Entries 1 Revenues 2 Expenses 3 Net income 4. Determine the effect of the adjusting entries on Nancy Townes, Capital. The adjusting entries ( increase or decrease) net income by $ ( ).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

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	10,350.00
2	Accounts Receivable	67,500.00
3	Supplies	16,200.00
4	Equipment	166,100.00
5	Accounts Payable		15,750.00
6	Unearned Fees		18,000.00
7	Nancy Townes, Capital		171,500.00
8	Nancy Townes, Drawing	13,500.00
9	Fees Earned		294,750.00
10	Wages Expense	94,500.00
11	Rent Expense	72,000.00
12	Utilities Expense	51,750.00
13	Miscellaneous Expense	8,100.00
14	Totals	500,000.00	500,000.00

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.

	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.

CHART OF ACCOUNTS

Milbank Repairs & Service

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Equipment
15	Accumulated Depreciation-Equipment

	LIABILITIES
21	Accounts Payable
22	Wages Payable
23	Unearned Fees

	EQUITY
31	Nancy Townes, Capital
32	Nancy Townes, Drawing
33	Dividends

	REVENUE
41	Fees Earned

	EXPENSES
51	Wages Expense
52	Rent Expense
53	Supplies Expense
54	Depreciation Expense
56	Utilities Expense
59	Miscellaneous Expense

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.

PAGE 10

JOURNAL ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Adjusting Entries
2
3
4
5
6
7
8
9
10
11

2. Determine the revenues, expenses, and net income of Milbank Repairs & Service before the adjusting entries.

Before Adjusting Entries

1	Revenues
2	Expenses
3	Net income

3. Determine the revenues, expenses, and net income of Milbank Repairs & Service after the adjusting entries.

After Adjusting Entries

1	Revenues
2	Expenses
3	Net income

4. Determine the effect of the adjusting entries on Nancy Townes, Capital.

The adjusting entries ( increase or decrease) net income by $ ( ).

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.