Unadjusted Financial Statements These financial statements were prepared from the unadjusted trial balance. Cole Designs Inc. Income Statement For the Year Ended December 31, 20Y3 Fees earned $67,800 Wages expense (44,900) Net income $22,900 Cole Designs Inc. Balance Sheet December 31, 2013 Assets Cash Accounts receivable Supplies Prepaid insurance Office equipment Total assets Liabilities Unearned fees Stockholders' Equity Common stock Retained earnings Total liabilities and stockholders' equity $6,000 32,200 3,700 3,800 11,000 $56,700 $8,900 / $12,000 35,800 47,800 $56,700 Adjusted Financial Statements These financial statements were prepared from the adjusted trial balance. Cole Designs Inc. Income Statement For the Year Ended December 31, 2013 Fees earned $74,000 Expenses: Wages expense $46,750 Supplies expense 3,560 Insurance expense 2,800 Depreciation expense 2.100 Total expenses (55,210) Net income $18,790 $6,000 32,850 140 Cole Designs Inc. Balance Sheet December 31, 2013 Assets Cash Accounts receivable Supplies Prepaid insurance Office equipment Accumulated depreciation-office equipment Total assets Liabilities Wages payable Unearned fees Total liabilities 1,000 $11,000 (2,100) 8,900 $48,890 $1,850 3,350 $5,200 Stockholders' Equity Common stock Retained earnings Total liabilities and stockholders' equity $12,000 31,690 43,690 $48,890 Accounting Bases Under which basis of accounting would adjusting entries never be recorded? Cash basis of accounting Which accounts would most likely not be used under the cash basis of accounting? a. Supplies Expense b. Unearned Fees c. Accounts Payable d. Revenue e. Accounts Receivable f. Cash b, cand e Matching Principeteven Recognition Under the content in the other The expenses incurred during period are watched with the even that the generated Under the counting the remoto principles that Hermes recomand when wervices have been performed or products have been delivered to customer view the international business for king the maching proteichtheit motief Cashpad in April tones incurred in May biashadin Alor experienced in April caved April trommerfors Decormed in d. Expenses incurred in Andre Services provided to conto daring Are the most customers for services promet land Overstated, Understated Assume that the cole Designs Inc. financial statements in the unadjusted Financial Statements panel were prepared from the Adjusted Financial Statements panel were prepared from the adjusted trial balance. For the following financial statement items, indicate Yes or No ir the item was overstated, understated or neither on the financi Overstated Understated Neither Net income Yes No Stockholders' equity Yes No Revenues No Yes Total assets Total expenses Yes Total liabilities Yes No No No No No No Yes No No No Adjusting Entries Journalize the six December 31 adjusting entries for Cole Designs Inc. that adjusted the accounts to arrive at the financial statem box does not require an entry, leave it blank. Dec. 31 Accounts Receivable Fees Earned Dec. 31 Supplies Expense Supplies Dec. 31 Insurance Expense Prepaid Insurance Dec. 31 Depreciation Expense Accumulated Depreciation-office Equipment Dec. 31 Wages Expense Wages Payable III Dec. 31 Unearned Fees II Fees Earned