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Adjusting Entries Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow: Debits Credits Accounts Receivable $75,000

Adjusting Entries

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 Fees10,000

Fees Earned400,000

Wages Expense 140,000

Rent 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.

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

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

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? All amounts are positive numbers.

Accumulated depreciation

by $Total assets

by $Unearned fees

by $Total liabilities

by $Owner's equity

by $Total liabilities and owner's equity

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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