Reference no: EM132382007

Question

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

DebitsCreditsAccounts Receivable$58,440 Equipment90,000 Accumulated Depreciation - Equipment $9,000 Prepaid Rent7,400 Supplies1,750 Wages Payable _ Unearned Fees 8,060 Fees Earned 341,290 Wages Expense115,130 Rent Expense_ Depreciation Expense_ Supplies Expense_

Data needed for year-end adjustments are as follows:

Supplies on hand at November 30, $530.

Depreciation of equipment during year, $880.

Rent expired during year, $5,380.

Wages accrued but not paid at November 30, $1,690.

Unearned fees at November 30, $3,390.

Unbilled fees at November 30, $4,030.

Required:

1. Journalize the six adjusting entries required at November 30, based on the data presented.

Nov. 30Supplies

Supplies Payable

30

30

30

30

30

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

by $Depreciation expense

by $Net income

by $

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

by $Total assets

by $Unearned fees

by $Total liabilities

by $Owner's equity

by $Total liabilities and owner's equity

by $

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?