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 Depreciation-Equipment		$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:

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

	Required:
1.	Journalize the six adjusting entries required at November 30, 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 adjustments (b) and (e) were omitted at the end of the year?
3.	What would be the effect on the balance sheet if adjustments (b) and (e) 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 adjustments (b) and (e) were omitted at the end of the year?

Final Questions

2. What would be the effect on the income statement if adjustments (b) and (e) were omitted at the end of the year?

	Over/Understated	Amount
Fees earned
Depreciation expense
Net income

3. What would be the effect on the balance sheet if adjustments (b) and (e) were omitted at the end of the year?

	Over/Understated	Amount
Accumulated Depreciation-Equipment
Total assets
Unearned fees
Total liabilities
Owners capital
Total liabilities and owners equity

4. What would be the effect on the Net increase or decrease in cash on the statement of cash flows if adjustments (b) and (e) were omitted at the end of the year?