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Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow: Debits Credits $ 75,000 250,000 Accounts Receivable Equipment Accumulated Depreciation-Equipment Prepaid Rent Supplies Wages Payable Unearned Fees 12,000 12,000 3,170 10,000 Fees Earned 400,000 Wages Expense Rent Expense Depreciation Expense Supplies Expense 140,000 Data needed for year-end adjustments are as follows: Supplies on hand at November 30, $550. Depreciation of equipment during year, $1,675. Rent expired during year, $8,50o. Wages accrued but not paid at November 30, $2,000. Unearned fees at November 30, $4,000. 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 the adjustments for equipment depreciation and unearned fees were omitted at the end of the year? 3. What would be the effect on the balance sheet if the adjustments for equipment de- preciation and unearned fees 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 equipment depreciation and unearned fees 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: Debits Credits $ 75,000 250,000 Accounts Receivable Equipment Accumulated Depreciation-Equipment Prepaid Rent Supplies Wages Payable Unearned Fees 12,000 12,000 3,170 10,000 Fees Earned 400,000 Wages Expense Rent Expense Depreciation Expense Supplies Expense 140,000 Data needed for year-end adjustments are as follows: Supplies on hand at November 30, $550. Depreciation of equipment during year, $1,675. Rent expired during year, $8,50o. Wages accrued but not paid at November 30, $2,000. Unearned fees at November 30, $4,000. 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 the adjustments for equipment depreciation and unearned fees were omitted at the end of the year? 3. What would be the effect on the balance sheet if the adjustments for equipment de- preciation and unearned fees 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 equipment depreciation and unearned fees were omitted at the end of the year?

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter3: Basic Accounting Systems: Accrual Basis
Section: Chapter Questions
Problem 3.23E: Adjustment for depreciation The estimated amount of depredation on equipment for the current year is...
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Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow: Debits Credits $ 75,000 250,000 Accounts Receivable Equipment Accumulated Depreciation-Equipment Prepaid Rent Supplies Wages Payable Unearned Fees 12,000 12,000 3,170 10,000 Fees Earned 400,000 Wages Expense Rent Expense Depreciation Expense Supplies Expense 140,000 Data needed for year-end adjustments are as follows: Supplies on hand at November 30, $550. Depreciation of equipment during year, $1,675. Rent expired during year, $8,50o. Wages accrued but not paid at November 30, $2,000. Unearned fees at November 30, $4,000. Unbilled fees at November 30, $5,380.
Transcribed Image Text:Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow: Debits Credits $ 75,000 250,000 Accounts Receivable Equipment Accumulated Depreciation-Equipment Prepaid Rent Supplies Wages Payable Unearned Fees 12,000 12,000 3,170 10,000 Fees Earned 400,000 Wages Expense Rent Expense Depreciation Expense Supplies Expense 140,000 Data needed for year-end adjustments are as follows: Supplies on hand at November 30, $550. Depreciation of equipment during year, $1,675. Rent expired during year, $8,50o. Wages accrued but not paid at November 30, $2,000. Unearned fees at November 30, $4,000. 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 the adjustments for equipment depreciation and unearned fees were omitted at the end of the year? 3. What would be the effect on the balance sheet if the adjustments for equipment de- preciation and unearned fees 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 equipment depreciation and unearned fees were omitted at the end of the year?
Transcribed Image Text: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 the adjustments for equipment depreciation and unearned fees were omitted at the end of the year? 3. What would be the effect on the balance sheet if the adjustments for equipment de- preciation and unearned fees 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 equipment depreciation and unearned fees were omitted at the end of the year?
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