Instructions Selected account balances before adjustment for Atlantic Coast Realty at July 31, the end of the current year, are as follows: Credits Accounts Receivable Debits $ 74,600 348,900 Equipment Accumulated Depreciation Prepaid Rent Equipment $112,600 9,200 3,200 Supplies 00W- Wages Payable Unearned Fees 14,400 Fees Earned 679,600 Wages Expense 338.800 Rent Expense Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: Unbilled fees at July 31, $10,650. Instructions Supplies Expense Data needed for year-end adjustments are as follows: DOWN- Unbilled fees at July 31, $10,650. Supplies on hand at July 31, $1,100. Rent expired, S6,350. Depreciation of equipment during year, $8,550. Unearned fees at July 31, $2,120. Wages accrued but not paid at July 31, $4,890. Required: 1. Journalize the six adjusting entries required at July 31, based on the data presented. Refer to the Chart of Accounts for exact wording of account titles. 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 omilled at the end of the year? Chart of Accounts Alantic Coast Realty ATWIN- General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 42 Rent Revenue 13 Supplies CONO 14 Prepaid Rent EXPENSES 15 Land 51 Advertising Expense 16 Equipment 52 Insurance Expense 17 Accumulated Depreciation-Equipment 53 Rent Expense LIABILITIES 21 Accounts Payable 54 Wages Expense 55 Supplies Expense 56 Utilities Expense 57 Depreciation Expense 59 Miscellaneous Expense 22 Unearned Fees 23 Wages Payable 24 Taxes Payable eBOOK Show Me How i Calculator Chart of Accounts 12 Accounts Receivable 42 Rent Revenue 13 Supplies 14 Prepaid Rent EXPENSES 15 Land 51 Advertising Expense 16 Equipment 52 Insurance Expense 0NAWIN 17 Accumulated Depreciation-Equipment 53 Rent Expense LIABILITIES 54 Wages Expense 55 Supplies Expense 56 Utilities Expense 57 Depreciation Expense 21 Accounts Payable 22 Unearned Fees 59 Miscellaneous Expense 23 Wages Payable 24 Taxes Payable EQUITY 31 Owner's Equity 32 Withdrawals Adjusting entries Instructions Chart of Accounts Journal Final Questions Chart of Accounts Journal 1. Journalize the six adjusting entries required at July 31, based on the data presented. Refer to the Chart of Accounts for exact wording of account titles. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY DESCRIPTION Adjusting Entries Adjusting entries Instructions Chart of Accounts Journal Final Questions Chart of Accounts Journal Adjusting entries Instructions Chart of Accounts Journal Final Questions Chart of Accounts Journal 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? Over/Understated Amount Fees earned Wages expense Net income 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? Adjusting entries Instructions Chart of Accounts Journal Final Questions Chart of Accounts X Journal V Final Questions 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? Over/Understated Amount Accounts receivable Total assets Wages payable IATA Total liabilities Owner's equity 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 unbilled fees and accrued wages were omitted at the end of the year
