Selected account balances before adjustment for Heartland Realty at August 31, 2014, the end of the current year, are as follows:

Data needed for year-end adjustments are as follows:
a. Unbilled fees at August 31, $9,150.
b. Supplies on hand at August 31, $675.
c. Rent expired, $5,000.
d. Depreciation of equipment during year, $3,300.
e. Unearned fees at August 31, $3,000.
f. Wages accrued but not paid at August 31, $3,100.

Instructions
1. Journalize the six adjusting entries required at August 31, based on the data presented.
2. What would be the effect on the income statement if adjustments (a) and (f) were omitted at the end of the year?
3. What would be the effect on the balance sheet if adjustments (a) and (f) were omitted at the end of the year?
4. What would be the effect on the “Net increase or decrease in cash” on the statement of cash flows if adjustments (a) and (f) were omitted at the end of theyear?

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Debits Credits Accounts Receivable Equipment Accumulated Depreciation Equipment Prepaid Rent Supplies Wages Payable Unearned Fees Fees Earned Wages Expense Rent Expense Depreciation Expense Supplies Expense 80,000 150,000 28,000 6,000 3,000 10,500 410,000 190,000