Adjusting entries
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, 2016
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| Â | Debit Balances | Credit Balances |
| Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,350 | Â |
| Accounts Receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 67,500 | Â |
| Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 16,200 | Â |
| Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 116,100 | Â |
| Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | Â | 15,750 |
| Unearned Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | Â | 18,000 |
| Common Stock  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |  | 10,000 |
| Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | Â | 111,500 |
| Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 13,500 | Â |
| Fees Earned. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | Â | 294,750 |
| Wages Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 94,500 | Â |
| Rent Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 72,000 | Â |
| Utilities Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 51,750 | Â |
| Miscellaneous Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | Â Â Â Â 8,100 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â |
| Â | 450,000 | 450,000 |
For preparing the adjusting entries, the following data were assembled:
a.   Fees earned but unbilled on April 30 were $9,850.
b.   Supplies on hand on April 30 were $4,660.
c.    Depreciation of equipment was estimated to be $6,470 for the year.
d.   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.
e.    Unpaid wages accrued on April 30 were $5,200.
Instructions
1.   Journalize the adjusting entries necessary on April 30, 2016.
2.   Determine the revenues, expenses, and net income of Reliable Service & Repairs before the adjusting entries.
3.   Determine the revenues, expense, and net income of Reliable Service & Repairs after the adjusting entries.
4.   Determine the effect of the adjusting entries on Retained Earnings.
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