Accounts Receivable Equipment Accumulated Depreciation-Equipment Prepaid Rent Supplies Wages Payable Unearned Fees Fees Earned Wages Expense Rent Expense Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: . Unbilled fees at July 31, $10,650. Supplies on hand at July 31, $1,100. Rent expired, $6,350. Depreciation of equipment during year, $8,550. Unearned fees at July 31, $2,120. Wages accrued but not paid at July 31, $4,890. Debits $ 74,600 348,900 Credits $112,600 9,200 3,200 14,400 679,600 338,800 How does grading work? DATE 1 DESCRIPTION Adjusting Entries JOURNAL POST REF DENT Score: 150/151 CREDIT Shaded cells have feedback PAGE 10 ACCOUNTING EQUATION ASSETS LIABILITIES 2 3 Jul 31 Accounts Receivable Fees Earned Jul 31 Supplies Expense Supplies 10,650.00 10,650.00 2,100.00 2,100.00 " Jul. 31 Prepaid Rent 6,350.00 7 Rent Expense 6,350.00 ' Jul 31 Depreciation Expense 8,550.00 " Accumulated Depreciation-Equipment 8,550.00 10 Jul. 31 Unearned Fees 12,280.00 = 11 Fees Earned 12,280.00 17 15 Jul. 51 Wages Expense Wages Payable 4,890.00 4,890.00 EQUITY Points: 29.8/30 2. What would be the effect on the income statement if the adjustments for unbilled fees and accrued wages were omitted at the end of the year? Over/Understated Fees earned Understated Wages expense Understated Net income Understated S Amount Points: 3/6 Feedback Check My Work 2. Half of the effect will occur on the income statement if there is an omission and the other half will occur on the balance sheet. What would overstatements or understatements of net income result from? 3. What would be the effect on the balance sheet if the adjustments for unbilled fees and accrued wages were omitted at the end of the year? Over/Understated Accounts receivable Total assets Understated Understated V B Wages payable Understated Total liabilities Understated O Retained earnings Understated V S Total liabilities and stockholders' equity Understated B Amount $74,600.00 X 4