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	$ 72,900
Equipment	349,200
Accumulated DepreciationEquipment		$117,900
Prepaid Rent	8,850
Supplies	3,020
Wages Payable
Unearned Fees		13,000
Fees Earned		657,700
Wages Expense	335,800
Rent Expense
Depreciation Expense
Supplies Expense

Data needed for year-end adjustments are as follows:

	Unbilled fees at July 31, $10,500.
	Supplies on hand at July 31, $900.
	Rent expired, $6,300.
	Depreciation of equipment during year, $8,650.
	Unearned fees at July 31, $1,590.
	Wages accrued but not paid at July 31, $4,710.

	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?

X

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.

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Adjusting Entries
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