Reference no: EM132675576

Question - Adjusting Entries

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:

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.

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.

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.

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?