Selected account balances before adjustment for Atlantic Coast Realty at July 31, the end of the current
Question:
Data needed for year-end adjustments are as follows:
¢ Unbilled fees at July 31, $11,150.
¢ Supplies on hand at July 31, $900.
¢ Rent expired, $6,000.
¢ Depreciation of equipment during year, $8,950.
¢ Unearned fees at July 31, $2,000.
¢ Wages accrued but not paid at July 31, $4,840.
Instructions
1. Journalize the six adjusting entries required at July 31, based on the data presented.
2. What would be the effect on the income statement if the adjustments for unbilled fees and accrued wages were omitted at the end of the year?
3. What would be the effect on the balance sheet if the adjustments for unbilled fees and accrued wages 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 the adjustments for unbilled fees and accrued wages were omitted at the end of the year?
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Financial And Managerial Accounting
ISBN: 9781337119207
14th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac