Question
Adjusting Entries Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow: DebitsCredits Accounts Receivable$75,000Equipment250,000Accumulated DepreciationEquipment$12,000Prepaid Rent12,000Supplies3,170Wages
Adjusting Entries
Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow:
DebitsCredits Accounts Receivable$75,000Equipment250,000Accumulated DepreciationEquipment$12,000Prepaid Rent12,000Supplies3,170Wages Payable-Unearned Fees10,000Fees Earned400,000Wages Expense140,000Rent Expense-Depreciation Expense-Supplies Expense-Data needed for year-end adjustments are as follows:
- Supplies on hand at November 30, $550.
- Depreciationof equipment during year, $1,675.
- Rent expired during year, $8,500.
- Wages accrued but not paid at November 30, $2,000.
- Unearned fees at November 30, $4,000.
- Unbilled fees at November 30, $5,380.
- Required:
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?
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