Fees earned but unbilled

Milbank Repairs & Service

UNADJUSTED TRIAL BALANCE

June 30, 2019

ACCOUNT TITLEDEBITCREDIT1Cash10,350.00 2Accounts Receivable67,500.00 3Supplies16,200.00 4Equipment166,100.00 5Accounts Payable 15,750.006Unearned Fees 18,000.007Nancy Townes, Capital 171,500.008Nancy Townes, Drawing13,500.00 9Fees Earned 294,750.0010Wages Expense94,500.00 11Rent Expense72,000.00 12Utilities Expense51,750.00 13Miscellaneous Expense8,100.00 14Totals500,000.00500,000.00

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, 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.

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Chart of Accounts

CHART OF ACCOUNTSMilbank Repairs & ServiceGeneral LedgerASSETS11Cash12Accounts Receivable13Supplies14Equipment15Accumulated Depreciation-Equipment

LIABILITIES21Accounts Payable22Wages Payable23Unearned Fees

EQUITY31Nancy Townes, Capital32Nancy Townes, Drawing33DividendsREVENUE41Fees Earned

EXPENSES51Wages Expense52Rent Expense53Supplies Expense54Depreciation Expense56Utilities Expense59Miscellaneous Expense

X

Journal

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1. Journalize the adjusting entries necessary on June 30, 2019.

How does grading work?

PAGE 10

JOURNAL

ACCOUNTING EQUATION

Score: 118/126

DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1 Adjusting Entries 2✔✔ ✔3✔ ✔4✔✔ ✔✔5✔ ✔✔6✔✔ ✔✔7✔ ✔✔8✔✔ ✔9✔ ✔10✔✔ ✔✔11✔ ✔✔

Points:

23.41 / 25

Feedback

Check My Work1. Keep in mind that you will be making an adjusting entry for each of these that affects at least one income statement account (revenue or expense) and one balance sheet account (asset or liability). As you go through each of these, consider both sides of the transaction that results in an adjusting entry and identify related accounts. Remember, four different categories of adjusting entries include prepaid expenses (deferred expenses), unearned revenues (deferred revenues), accrued expenses (accrued liabilities), and accrued revenues (accrued assets) plus the adjustment for depreciation expense.

X

Final Questions

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

Question not attempted.

Score: 0/12

Before Adjusting Entries1Revenues2Expenses3Net income

Milbank Repairs & Service

UNADJUSTED TRIAL BALANCE

June 30, 2019

ACCOUNT TITLEDEBITCREDIT1Cash10,350.00 2Accounts Receivable67,500.00 3Supplies16,200.00 4Equipment166,100.00 5Accounts Payable 15,750.006Unearned Fees 18,000.007Nancy Townes, Capital 171,500.008Nancy Townes, Drawing13,500.00 9Fees Earned 294,750.0010Wages Expense94,500.00 11Rent Expense72,000.00 12Utilities Expense51,750.00 13Miscellaneous Expense8,100.00 14Totals500,000.00500,000.00

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, 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.

X

Chart of Accounts

CHART OF ACCOUNTSMilbank Repairs & ServiceGeneral LedgerASSETS11Cash12Accounts Receivable13Supplies14Equipment15Accumulated Depreciation-Equipment

LIABILITIES21Accounts Payable22Wages Payable23Unearned Fees

EQUITY31Nancy Townes, Capital32Nancy Townes, Drawing33DividendsREVENUE41Fees Earned

EXPENSES51Wages Expense52Rent Expense53Supplies Expense54Depreciation Expense56Utilities Expense59Miscellaneous Expense

X

Journal

Shaded cells have feedback.

1. Journalize the adjusting entries necessary on June 30, 2019.

How does grading work?

PAGE 10

JOURNAL

ACCOUNTING EQUATION

Score: 118/126

DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1 Adjusting Entries 2✔✔ ✔3✔ ✔4✔✔ ✔✔5✔ ✔✔6✔✔ ✔✔7✔ ✔✔8✔✔ ✔9✔ ✔10✔✔ ✔✔11✔ ✔✔

Points:

23.41 / 25

Feedback

Check My Work1. Keep in mind that you will be making an adjusting entry for each of these that affects at least one income statement account (revenue or expense) and one balance sheet account (asset or liability). As you go through each of these, consider both sides of the transaction that results in an adjusting entry and identify related accounts. Remember, four different categories of adjusting entries include prepaid expenses (deferred expenses), unearned revenues (deferred revenues), accrued expenses (accrued liabilities), and accrued revenues (accrued assets) plus the adjustment for depreciation expense.

X

Final Questions

Shaded cells have feedback.

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

Question not attempted.

Score: 0/12

Before Adjusting Entries1Revenues2Expenses3Net income