Question
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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