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     ACCOUNT TITLE DEBIT CREDIT 1 Cash 10,150.00   2 Accounts Receivable 67,550.00   3 Supplies 16,590.00   4 Equipment 112,610.00   5 Accounts Payable   15,540.00 6 Unearned Fees   18,360.00 7 Nancy Townes, Capital   120,650.00 8 Nancy Townes, Drawing 13,540.00   9 Fees Earned   291,750.00 10 Wages Expense 94,050.00   11 Rent Expense 72,120.00   12 Utilities Expense 51,730.00   13 Miscellaneous Expense 7,960.00   14 Totals 446,300.00 446,300.00       For preparing the adjusting entries, the following data were assembled: • Fees earned but unbilled on June 30 were $10,310. • Supplies on hand on June 30 were $4,550. • Depreciation of equipment was estimated to be $6,180 for the year. • The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June, $15,030 of the services were provided. • Unpaid wages accrued on June 30 were $5,070.     Required: 1. Journalize the adjusting entries necessary on June 30, 2019. Refer to the Chart of Accounts for exact wording of account titles. 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. 1. Journalize the adjusting entries necessary on June 30, 2019. 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                   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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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, 2019
 
  ACCOUNT TITLE DEBIT CREDIT
1
Cash
10,150.00
 
2
Accounts Receivable
67,550.00
 
3
Supplies
16,590.00
 
4
Equipment
112,610.00
 
5
Accounts Payable
 
15,540.00
6
Unearned Fees
 
18,360.00
7
Nancy Townes, Capital
 
120,650.00
8
Nancy Townes, Drawing
13,540.00
 
9
Fees Earned
 
291,750.00
10
Wages Expense
94,050.00
 
11
Rent Expense
72,120.00
 
12
Utilities Expense
51,730.00
 
13
Miscellaneous Expense
7,960.00
 
14
Totals
446,300.00
446,300.00
 
 
 
For preparing the adjusting entries, the following data were assembled:
Fees earned but unbilled on June 30 were $10,310.
Supplies on hand on June 30 were $4,550.
Depreciation of equipment was estimated to be $6,180 for the year.
The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June, $15,030 of the services were provided.
Unpaid wages accrued on June 30 were $5,070.
 
  Required:
1. Journalize the adjusting entries necessary on June 30, 2019. Refer to the Chart of Accounts for exact wording of account titles.
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.
1. Journalize the adjusting entries necessary on June 30, 2019.
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
 
 
 
 
 
 
 
 
 
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
 
 
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