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.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.