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Milbank Repairs & Service
Unadjusted Trial Balance
June 30, 20Y4
	Debit Balances		Credit Balances
Cash	15,090
Accounts Receivable	100,230
Supplies	24,150
Equipment	562,800
Accounts Payable			23,550
Unearned Fees			26,570
Nancy Townes, Capital			404,000
Nancy Townes, Drawing	19,920
Fees Earned			603,770
Wages Expense	140,070
Rent Expense	106,870
Utilities Expense	76,680
Miscellaneous Expense	12,080
	1,057,890		1,057,890

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

Required:

• Fees earned but unbilled on June 30 were $10,930.
• Supplies on hand on June 30 were $8,920.
• Depreciation of equipment was estimated to be $15,090 for the year.
• The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June, $20,990 of the services were provided.
• Unpaid wages accrued on June 30 were $1,930.

1. Journalize the adjusting entries necessary on June 30, 20Y4. If an amount box does not require an entry, leave it blank.

20Y4 June 30
30
30
30
30

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

Revenues	$
Expenses
Net income	$

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

Revenues	$
Expenses
Net income	$

4. Determine the effect of the adjusting entries on Nancy Townes, Capital. Enter the amount as positive numbers. Nancy Townes, Capital by $.

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