Instructions Chart of Accounts Joumal Final Questions Instructions Selected account balances before adjustment for Atlantic Coast Realty at July 31, the end of the current year. are as follows: Chart of Accounts Final Questions 2. What would be the effect on the income statement if the adjustments for unbilled fees and accrued wages were omitted at the end of the year? Debits Credits Accounts Receivable $79,500 Equipment 342,700 Accumulated Depreciation-Equipment Prepaid Rent $102,700 9,300 Supplies 3,180 Wages Payable Unearned Fees Fees Earned Wages Expense Rent Expense Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: Unbilled fees at July 31, $10,250. Supplies on hand at July 31, $930. Rent expired, $5.800. Depreciation of equipment during year, $8,750. Unearned fees at July 31, $2,100. CHART OF ACCOUNTS Atlantic Coast Realty General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 14,100 670,200 12 Accounts Receivable 42 Rent Revenue 13 Supplies 329,600 14 Prepaid Rent 15 Land 16 Equipment 17 Accumulated Depreciation-Equipment Fees earned Wages expense Net income Over/Understated Amount S $ 3. What would be the effect on the balance sheet if the adjustments for unbilled fees and accrued wages were omitted at the end of the year? Accounts receivable Total assets Jou EXPENSES Wages payable 51 Advertising Exper 52 Insurance Expens 1. J Total liabilities Owner's equity. 53 Rent Expense cred Total liabilities and owner's equity 54 Wages Expense LIABILITIES 55 Supplies Expense 21 Accounts Payable 56 Utilities Expense 22 Unearned Fees 57 Depreciation Exp DATE 59 Miscellaneous Ex 23 Wages Payable 24 Taxes Payable Over/Understated Amount S S S S $ 4. What would be the effect on the "Net increase or decrease in cash" on the statement of cash flows if the adjustments for unbilled fees and accrued wages were omitted at the end of the year? DESCRIPTION Adjusting Entries POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY Wages accrued but not paid at July 31, $4,900. Required: EQUITY 31 Owner's Equity 32 Withdrawals. Journalize the six adjusting entries required at July 31, based on the data presented herer to the chart or accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries CNOW journals will automatically indent a credit entry when a credit amount is entered. 2. What would be the effect on the income statement if the adjustments for unbilled fees and accrued wages were omitted at the end of the year? 3. What would be the effect on the balance sheet if the adjustments for unbilled fees and accrued wages were omitted at the end of the year? 4. What would be the effect on the "Net increase or decrease in cash" on the statement of cash flows if the adjustments for unbilled fees and accrued wages were omitted at the end of the year? 12 13