Selected account balances before adjustment for Atlantic Coast Realty at July 31, the end of the current year, are as follows:

	Debits	Credits
Accounts Receivable	$ 73,600
Equipment	346,600
Accumulated DepreciationEquipment		$107,000
Prepaid Rent	8,550
Supplies	3,090
Wages Payable
Unearned Fees		11,000
Fees Earned		672,400
Wages Expense	337,500
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, $710.
	Rent expired, $5,700.
	Depreciation of equipment during year, $9,500.
	Unearned fees at July 31, $2,340.
	Wages accrued but not paid at July 31, $4,700.

	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 omitted at the end of the year?

CHART OF ACCOUNTS Alantic Coast Realty General Ledger ASSETS REVENUE 41 Fees Earned 11 Cash 12 Accounts Receivable 42 Rent Revenue 13 Supplies 14 Prepaid Rent EXPENSES 15 Land 16 Equipment 17 Accumulated Depreciation Equipment 51 Advertising Expense 52 Insurance Expense 53 Rent Expense 54 Wages Expense 55 Supplies Expense 56 Utilities Expense 57 Depreciation Expense 59 Miscellaneous Expense LIABILITIES 21 Accounts Payable 22 Unearned Fees 23 Wages Payable 24 Taxes Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends 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 DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Adjusting Entries 2 3 4 5 6 7 8 9 10 11 12 13 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? Over/Understated Amount Accounts receivable $ Total assets $ Wages payable $ ] [ ] [ ] [ ] [ 2 ] [ Total liabilities $ Retained earnings $ Total liabilities and stockholders' 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