Question

Selected account balances before adjustment for Intuit Realty at November 30, 2014, the end of the current year, are shown below.


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.

Instructions
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 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 theyear?


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  • CreatedFebruary 28, 2014
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