Mastery Problem: The Adjusting Process. Unadjusted Financial Statements These financial statements were prepared from the unadjusted trial balance. Cole Designs Inc. Income Statement For the Year Ended December 31, 2013 Fees earned $70,200 Wages expense (44,750) Net income $25,450 Cole Designs Inc. Balance Sheet December 31, 2013 Assets Cash Accounts receivable Supplies Prepaid insurance Office equipment Total assets Liabilities Unearned fees Stockholders' Equity Common stock Retained earnings Total liabilities and stockholders' equity $4,000 32.600 3.600 3,400 11,000 354,600 $9.000 $12.000 34 600 46,600 554.600 Adjusted Financial Statements These financial statements were prepared from the adjusted trial balance. Cole Designs Inc. 1,000 $54,600 $8,000 Orice equipment Total assets Liabilities Unearned fees Stockholders' Equity Common stock Retained earnings Total liabilities and stockholders' equity $12,000 34,600 46,600 $54,600 Adjusted Financial Statements These financial statements were prepared from the adjusted trial balance. Cole Designs Inc. Income Statement For the Year Ended December 31, 2013 Fees earned $76,400 Expenses: Wages expense $47.200 Supplies expense 3,520 Insurance expense 2,200 Depreciation expense 1.900 Total expenses (54,820) Net income $21,580 Cole Designs Inc. Balance Sheet December 31, 2013 Assets Cash Accounts receivable Supplies Prepaid insurance 54,000 33,400 80 1.200 ms Total expenses (54,820) $21,580 Net income $4,000 33,400 80 1,200 Cole Designs Inc. Balance Sheet December 31, 2013 Assets Cash Accounts receivable Supplies Prepaid insurance Office equipment Accumulated depreciation-office equipment Total assets Liabilities Wages payable Unearned fees Total liabilities Stockholders' Equity Common stock Retained earnings Total liabilities and stockholders' equity $11,000 (1,900) 9,100 $47,780 $2,450 2,600 $5,050 $12.000 30,730 42,730 547.780 Accounting Bases Under which basis of accounting would adjusting entries never be recorded? Which accounts would most likely not be used under the cash basis of accounting? a. Supplies Expense b. Unearned Fees c. Accounts Payable d. Revenue Services provided to customers on account during Apel F. Cach received from canh customers for service performed in April. Overstated. Understated Rusume that the cole Design Inc. Financial statements in the Undjusted Financial Statements panel were prepared from the urated trace and the ancie statement in the Agated Financial Statement and prepared from the adjusted trial base For the following finansal mehrerin Yes or No if the item was over understand or certe restacements preseding the named a balance | Overstated Understated Neither Net income Stockholders Feve Total Teta Total Adjusting Entries Journal these for one in tutto Santos De 1 bei 00 Stockholders equity Revenues Total assets Total expenses Total liabilities Adjusting Entries Journalize the six December 31 adjusting entries for Cole Designs Inc. that adjusted the accounts to arrive at the it blank. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 | Dec 31