At the end of the current year, $21,200 of fees have been earned but have not been billed to clients.

Required:A.Journalize the adjusting entry to record the accrued fees on December 31. Refer to the Chart of Accounts for exact wording of account titles.B.If the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary?

CHART OF ACCOUNTS

General Ledger

ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid insurance 15 Land 16 Equipment 17 Accumulated Depreciation-Equipment

LIABILITIES 21 Accounts Payable 22 Unearned Fees 23 Salaries Payable 24 Taxes Payable

EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends

REVENUE 41Fees Earned

EXPENSES 51 Advertising Expense 52 Insurance Expense 53 Rent Expense 54 Salary Expense 55Supplies Expense 56 Utilities Expense 57 Depreciation Expense 59 Miscellaneous Expense A. Journalize the adjusting entry to record the accrued fees on December 31. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF.DEBIT CREDIT ASSETS LIABILITIES EQUITY

Date Description Debit Credit 1 ____ Adjusting Entries _______ ______

2 ____ ___________________ _______ _______

3 _____ ___________________ ________ _______

B. If the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary?