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if the adjustmets werent made what would the effect be on assets/ liabilities and equity (over/under stated $$$!) please expalin .... Thank you!! Magic Cleaning

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if the adjustmets werent made what would the effect be on assets/ liabilities and equity (over/under stated $$$!)
please expalin .... Thank you!!
Magic Cleaning Services has a fiscal year end of December 31st. It is in its first year of operations. As of December 31, Magic has the following unadjusted trial balance: Account Credit Cash Accounts Receivable Debit $ 430,900 $ 158,000 $111,000 $ 90,000 Supplies Building Accounts Payable Unearned Service Revenue Common Stock Retained Earnings Service Revenue Wage Expense Rent Expense Utilities Expense Administrative Expense TOTALS $ 45,900 $ 108,000 $ 100,000 -O- $ 619,200 $ 48,600 $ 12,400 $ 6,200 $ 16,000 $ 873 100 $ 873,100 In addition, Magic has not yet adjusted for the following: 1. The building was purchased on March 1 of the current year. It has a 30-year life, 10% salvage value and Magic uses the straight-line method for depreciation 2. On September 1, Magic prepaid $12.400 for 10 months of rent on a warehouse. The original entry was recorded as Rent Expense, 3. By December 31st, 30% of the of the services related to the Unearned Revenues had been performed 4. Wages of $4,600 should be accrued and are scheduled to be paid on January 2. 5. Supplies of $98,000 were still on hand at year end. 6. Based on industry averages, it is estimated that 3% of the accounts receivable will prove to be uncollectible

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