ructions ected account balances before adjustment for Atlantic Coast Realty at July 31, the end of the current year, are as follows: Debits Credits Accounts Receivable $75,000 Equipment 345,700 Accumulated Depreciation-Equipment $112,500 Prepaid Rent 9,000 Supplies 3,350 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, $11,150. Supplies on hand at July 31, 5900 Rent expired, $6,000, Depreciation of equipment during year, $8,950. Unearned fees at July 31, $2,000, Wages accrued but not paid at July 31, 54,840 Required: 12,000 660,000 325,000 1. Journalize the six adjusting entries required at July 31, based on the data presented. General Journal Instructions Data ne 11 11 DATE DESCRIPTION Adjusting Entries JOURNAL PAGE 10 ACCOUNTING EQUATION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY inal Questions 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? Fees earned Wages expense Net income Over/Understated Amount $ $ 3 What would be the effect on the balance sheet if the adjustments for unbited fees and accrued wages were omitted at the end of the year? Accounts receivable Tolai assets Over/Understated Amount $ S Wages payable Total sabites Retained earnings Total abilities and stockholders' equity $ 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 untried fees and accrued wages were omitted at the end of the year? Instructions Reliable Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance on November 30, 20Y3: Reliable Repairs & Service UNADJUSTED TRIAL BALANCE November 30, 2013 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Supplies 25,350.00 67.500.00 16,200.00 Equipment Accounts Payable 181,100.00 25.750.00 Unearned Fees 18.000.00 7 Common Stock 75,000.00 Retained Earnings 111.500.00 Dividends 13,500.00 10 Fees Earned 11 Wages Expense 12 Rent Expense 369,750.00 144,500.00 92.000.00 13 Utilities Expense 24 Miscellaneous Expense 15 Totals 51.750.00 8.100.00 600,000.00 600,000.00 For preparing the adjusting entries, the following data were assembled: Fees earned but unbilled on November 30 were $10,500 Re General Journal 1. Journalize the adjusting entries necessary on November 30, 2013 General Journal instructions DATE DESCRIPTION Adjusting Entries JOURNAL PAGE 10 ACCOUNTING EQUATION POSTREK DEBIT CREDIT ASSETS Sore on hand on November 3 were ST175 Depreciation of equipment was estimated to be 50.500 for the year The balance in uneamed fees represented the November 1 receipt in advance for services to be provided During November, $10,000 of the services were provided Unpaid wages accrued on Novem LIABILITIES EQUITY Re General Journal Final Questions 1 Ge 2. Determine the revenues, expenses, and net income of Reliable Repairs & Service before the adjusting entries. 1 Revenues 2 Expenses 3 Net income Before Adjusting Entries 2 3. Determine the revenues, expenses, and net income of Reliable Repairs & Service after the adjusting entries. 5 3 10 11 12 10 13 11 Fo 1 Revenues 1 Expenses 3 Net income After Adjusting Entries 4. Determine the effect of the adjusting entries on Retained Earnings. The Retained Earnings account by S