Adjusting entries OBJ. 2, 3 Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow:
Debits Credits Accounts Receivable $ 75,000 Equipment 250,000 Accumulated Depreciation—Equipment $ 12,000 Prepaid Rent 12,000 Supplies 3,170 Wages Payable —
Unearned Fees 10,000 Fees Earned 400,000 Wages Expense 140,000 Rent Expense —
Depreciation Expense —
Supplies Expense —
Data needed for year-end adjustments are as follows:

a. Supplies on hand at November 30, $550.

b. Depreciation of equipment during year, $1,675.

c. Rent expired during year, $8,500.

d. Wages accrued but not paid at November 30, $2,000.

e. Unearned fees at November 30, $4,000.

f. Unbilled fees at November 30, $5,380.
Instructions 1. Journalize the six adjusting entries required at November 30, based on the data presented.
2. What would be the effect on the income statement if adjustments

(b) and

(e) were omitted at the end of the year?
3. What would be the effect on the balance sheet if adjustments

(b) and

(e) 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

(b) and

(e) were omitted at the end of the year?
PR 3-3B Adjusting entries OBJ. 2, 3 Crazy Mountain Outfitters Co., an outfitter store for fishing treks, prepared the following unadjusted trial balance at the end of its first year of operations:
Crazy Mountain Outfitters Co.
Unadjusted Trial Balance April 30, 2016 Debit Balances Credit Balances Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,400 Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,600 Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,200 Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112,000 Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,200 Unearned Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,200 Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117,800 Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 Fees Earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305,800 Wages Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157,800 Rent Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,000 Utilities Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,000 Miscellaneous Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000 475,000 475,000 For preparing the adjusting entries, the following data were assembled:

a. Supplies on hand on April 30 were $1,380.

b. Fees earned but unbilled on April 30 were $3,900.

c. Depreciation of equipment was estimated to be $3,000 for the year.

d. Unpaid wages accrued on April 30 were $2,475.

e. The balance in unearned fees represented the April 1 receipt in advance for services to be provided. Only $14,140 of the services was provided between April 1 and April 30.
Instructions 1. Journalize the adjusting entries necessary on April 30, 2016.
2. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co.
before the adjusting entries.
3. Determine the revenues, expense, and net income of Crazy Mountain Outfitters Co.
after the adjusting entries.
4. Determine the effect of the adjusting entries on Retained Earnings.