Adjusting Entries

Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow:

	Debits		Credits
Accounts Receivable	$54,800
Equipment	85,000
Accumulated Depreciation - Equipment			$8,440
Prepaid Rent	6,900
Supplies	1,640
Wages Payable			_
Unearned Fees			7,560
Fees Earned			320,030
Wages Expense	107,960
Rent Expense	_
Depreciation Expense	_
Supplies Expense	_

Data needed for year-end adjustments are as follows:

Required:

Supplies on hand at November 30, $490.

Depreciation of equipment during year, $820.

Rent expired during year, $5,040.

Wages accrued but not paid at November 30, $1,590.

Unearned fees at November 30, $3,180.

Unbilled fees at November 30, $3,780.

1. Journalize the six adjusting entries required at November 30, based on the data presented.

Nov. 30
30
30
30
30
30

2. What would be the effect on the income statement if the adjustments for equipment depreciation and unearned fees were omitted at the end of the year? Enter all amounts as positive numbers.

Fees earned		by $
Depreciation expense		by $
Net income		by $

3. What would be the effect on the balance sheet if the adjustments for equipment depreciation and unearned fees were omitted at the end of the year? Enter all amounts as positive numbers.

Accumulated depreciation		by $
Total assets		by $
Unearned fees		by $
Total liabilities		by $
Owner's equity		by $
Total liabilities and owner's equity		by $

4. What would be the effect on the Net increase or decrease in cash on the statement of cash flows if the adjustments for equipment depreciation and unearned fees were omitted at the end of the year?