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Reliable Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations:
Reliable Repairs & Service
UNADJUSTED TRIAL BALANCE
April 30, 2018
For preparing the adjusting entries, the following data were assembled:
Ã¢â‚¬Â¢Fees earned but unbilled on April 30 were $9,850.Ã¢â‚¬Â¢Supplies on hand on April 30 were $4,660.Ã¢â‚¬Â¢Depreciation of equipment was estimated to be $6,470 for the year.Ã¢â‚¬Â¢The balance in unearned fees represented the April 1 receipt in advance for services to be provided. During April, $15,000 of the services were provided.Ã¢â‚¬Â¢Unpaid Wages accrued on April 30 were $5,200.Required:1.Journalize the adjusting entries necessary on April 30, 2018. Refer to the Chart of Accounts for exact wording of account titles.2.Determine the revenues, expenses, and net income of Reliable Repairs & Service before the adjusting entries.3.Determine the revenues, expense, and net income of Reliable Repairs & Service after the adjusting entries.4.Determine the effect of the adjusting entries on Retained Earnings.
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