Reference no: EM132566160

Question - Funan Repairs and Service, an electronics repair store, prepared the unadjusted trial balance, shown below, at the end of its first year of operations.

Funan Repairs and Service Unadjusted Trial Balance as at June 30, 2019

	Dr	Cr
Cash	13,800
Accounts Receivable	90,000
Supplies	21,600
Equipment	154,800
Accounts Payable		21000
Unearned Fee		24000
Adam Lee, Capital		162,000
Adam Lee, Drawings	18,000
Fees Earned		393,000
Wages Expense	126,000
Rent Expense	96,000
Utilities Expense	69,000
Miscellaneous	10,800
Expense	$600,000	$600,000

The following data was prepared for the purpose of recording the balance day adjustments:

(a) Fees earned but not invoiced on June 30 were $12,700.

(b) Supplies on hand on June 30 amounted to $4,175.

(c) The equipment was purchased at the formation of the business. The accountant estimates it will have a residual value of $4,800 and useful life of 8 years. It is decided to depreciate the equipment using the reducing balance method at a rate of 50%.

(d) The balance in the unearned feeds represents the June 1 receipt in advance for services to be provided. Only $14,200 of the services was provided before the 30 June.

(e) Unpaid wages accrued on 30 June amounted to $1,100.

Required - Journalise the adjusting entries necessary at 30 June 2016. Show all workings. Narrations are required.