For preparing the adjusting entries, the following data were assembled:
1. Fees earned but unbilled on June 30 were $12,700.
2. Supplies on hand on June 30 were $4,175.
3. Depreciation of equipment was estimated to be $7,400 for the year.
4. The balance in unearned fees represented the June 1 receipt in advance for services to be provided. Only $14,200 of the services was provided between June 1 and June 30.
5. Unpaid wages accrued on June 30 were $1,100.
6.
Instructions
1. Journalize the adjusting entries necessary on June 30, 2014.
2. Determine the revenues, expenses, and net income of Electro Service & Repairs before the adjusting entries.
3. Determine the revenues, expense, and net income of Electro Service & Repairs after the adjusting entries.
4. Determine the effect of the adjusting entries on Retained Earnings.