Chapter 3 HW: 4

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

	Debits		Credits
Accounts Receivable	$62,920
Equipment	97,000
Accumulated Depreciation - Equipment			$9,690
Prepaid Rent	7,900
Supplies	1,890
Wages Payable			_
Unearned Fees			8,680
Fees Earned			367,450
Wages Expense	123,950
Rent Expense	_
Depreciation Expense	_
Supplies Expense	_

Data needed for year-end adjustments are as follows:

Required:

• Supplies on hand at November 30, $570.
• Depreciation of equipment during year, $940.
• Rent expired during year, $5,790.
• Wages accrued but not paid at November 30, $1,820.
• Unearned fees at November 30, $3,650.
• Unbilled fees at November 30, $4,340.

Question Content Area

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? (Understated, overstated, or no effect)

Nov. 30 30 30 30 30 30 Fees earned by $ Depreciation expense by $ Net income by $ Accumulated depreciation by $ Total assets by $ boll Unearned fees by s Total liabilities by $ by $ Owner's equity Total liabilities and owner's equity by $