Selected account balances before adjustment for Intuit Realty at November 30, the end of the current...
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Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow: Accounts Receivable Equipment Accumulated Depreciation-Equipment Prepaid Rent Supplies Wages Payable Unearned Fees Fees Earned Wages Expense Rent Expense Depreciation Expense Supplies Expense Debits Credits $ 75,000 250,000 $12,000 12,000 3,170 10,000 400,000 140,000 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. 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? 2. What would be the effect on the income statement if adjustments (b) and (e) were omitted at the end of the year? Fees earned Depreciation expense Net income Over/Understated Amount 3. What would be the effect on the balance sheet if adjustments (b) and (e) were omitted at the end of the year? Accumulated Depreciation-Equipment Total assets Uneamed Fees Total liabilities Retained earnings Total liabilities and stockholders' equity Over/Understated Amount 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? Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow: Accounts Receivable Equipment Accumulated Depreciation-Equipment Prepaid Rent Supplies Wages Payable Unearned Fees Fees Earned Wages Expense Rent Expense Depreciation Expense Supplies Expense Debits Credits $ 75,000 250,000 $12,000 12,000 3,170 10,000 400,000 140,000 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. 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? 2. What would be the effect on the income statement if adjustments (b) and (e) were omitted at the end of the year? Fees earned Depreciation expense Net income Over/Understated Amount 3. What would be the effect on the balance sheet if adjustments (b) and (e) were omitted at the end of the year? Accumulated Depreciation-Equipment Total assets Uneamed Fees Total liabilities Retained earnings Total liabilities and stockholders' equity Over/Understated Amount 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?
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1 Journal entries for adjustments a Supplies Expense 3170 Supplies 550 b Depreciation Expense ... View the full answer
Related Book For
Corporate Financial Accounting
ISBN: 9781337398169
15th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
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