Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow:

	Debits		Credits
Accounts Receivable	$75,000
Equipment	250,000
Accumulated DepreciationEquipment			$12,000
Prepaid Rent	12,000
Supplies	3,170
Wages Payable
Unearned Fees			10,000
Fees Earned			400,000
Wages Expense	140,000
Rent Expense
Depreciation Expense
Supplies Expense

Data needed for year-end adjustments are as follows:

• Supplies on hand at November 30, $550.
• Depreciation of equipment during year, $1,675.
• Rent expired during year, $8,500.
• Wages accrued but not paid at November 30, $2,000.
• Unearned fees at November 30, $4,000.
• Unbilled fees at November 30, $5,380.

Required:

1. Journalize the six adjusting entries required at November 30, based on the data presented. If an amount box does not require an entry, leave it blank.

Nov. 30	Accounts PayableAccounts ReceivableCashSuppliesSupplies ExpenseSupplies PayableSupplies ReceivableSupplies Revenue	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashSuppliesSupplies ExpenseSupplies PayableSupplies ReceivableSupplies Revenue	- Select -	- Select -
30	Accounts PayableAccounts ReceivableAccumulated DepreciationDepreciation ExpenseDepreciation PayableEquipmentEquipment ExpenseEquipment Payable	- Select -	- Select -
	Accounts PayableAccounts ReceivableAccumulated Depreciation-EquipmentDepreciation ExpenseDepreciation PayableEquipmentEquipment ExpenseEquipment Payable	- Select -	- Select -
30	CashPrepaid ReceivablePrepaid RentRent ExpenseRent PayableRent ReceivableRent RevenueUnearned Rent	- Select -	- Select -
	CashPrepaid ReceivablePrepaid RentRent ExpenseRent PayableRent ReceivableRent RevenueUnearned Rent	- Select -	- Select -
30	Accounts PayableAccounts ReceivableCashPrepaid WagesWages ExpenseWages PayableWages ReceivableWages Revenue	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashPrepaid WagesWages ExpenseWages PayableWages ReceivableWages Revenue	- Select -	- Select -
30	Accounts ReceivableCashFees EarnedFees ExpenseFees PayableFees ReceivableUnearned FeesUnearned Rent	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashFees EarnedFees ExpenseFees PayableFees ReceivableUnearned Fees	- Select -	- Select -
30	Accounts PayableAccounts ReceivableCashFees EarnedFees ExpenseFees PayableFees ReceivableUnearned Fees	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashFees EarnedFees ExpenseFees PayableFees ReceivableUnearned Fees	- Select -	- Select -

2. What would be the effect on the income statement if the adjustments for equipment depreciation and unearned fees were omitted at the end of the year? Enter all amounts as positive numbers.

Fees earned	understatedoverstated	by $fill in the blank e3aea0026006fe0_2
Depreciation expense	understatedoverstated	by $fill in the blank e3aea0026006fe0_4
Net income	understatedoverstated	by $fill in the blank e3aea0026006fe0_6

3. What would be the effect on the balance sheet if the adjustments for equipment depreciation and unearned fees were omitted at the end of the year? Enter all amounts as positive numbers.

Accumulated depreciation	understatedoverstated	by $fill in the blank e3aea0026006fe0_8
Total assets	understatedoverstated	by $fill in the blank e3aea0026006fe0_10
Unearned fees	understatedoverstated	by $fill in the blank e3aea0026006fe0_12
Total liabilities	understatedoverstated	by $fill in the blank e3aea0026006fe0_14
Retained earnings	understatedoverstated	by $fill in the blank e3aea0026006fe0_16
Total liabilities and stockholders' equity	understatedoverstated	by $fill in the blank e3aea0026006fe0_18

4. What would be the effect on the "Net increase or decrease in cash" on the statement of cash flows if the adjustments for equipment depreciation and unearned fees were omitted at the end of the year?

UnderstatedOverstatedNo effect