Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow: Debits Credits Accounts Receivable $52,310 Equipment 81,000 Accumulated Depreciation - Equipment $8,060 Prepaid Rent 6,600 Supplies 1,570 Wages Payable _ Unearned Fees 7,220 Fees Earned 305,490 Wages Expense 103,050 Rent Expense _ Depreciation Expense _ Supplies Expense _ Data needed for year-end adjustments are as follows: Supplies on hand at November 30, $470. Depreciation of equipment during year, $780. Rent expired during year, $4,810. Wages accrued but not paid at November 30, $1,520. Unearned fees at November 30, $3,030. Unbilled fees at November 30, $3,610. Required: Question Content Area 1. Journalize the six adjusting entries required at November 30, based on the data presented. Nov. 30 Supplies Expense Supplies 30 Depreciation Expense Accumulated Depreciation - Equipment 30 Rent Expense Prepaid Rent 30 Wages Expense Wages Payable 30 Unearned Fees Fees Earned 30 Accounts Receivable Fees Earned Feedback Area Feedback 1. Keep in mind that you will be making an adjusting entry for each of these that affects at least one income statement account (revenue or expense) and one balance sheet account (asset or liability). As you go through each of these, consider both sides of the transaction that results in an adjusting entry and identify related accounts. Remember, four different categories of adjusting entries include prepaid expenses (deferred expenses), unearned revenues (deferred revenues), accrued expenses (accrued liabilities), and accrued revenues (accrued assets) plus the adjustment for depreciation expense. Question Content Area 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. Fees earned by $fill in the blank d37edafd4fcefa9_2 Depreciation expense by $fill in the blank d37edafd4fcefa9_4 Net income by $fill in the blank d37edafd4fcefa9_6 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. Accumulated depreciation by $fill in the blank d37edafd4fcefa9_8 Total assets by $fill in the blank d37edafd4fcefa9_10 Unearned fees by $fill in the blank d37edafd4fcefa9_12 Total liabilities by $fill in the blank d37edafd4fcefa9_14 Owner's equity by $
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow:
| Debits | Credits | |||
| Accounts Receivable | $52,310 | |||
| Equipment | 81,000 | |||
| $8,060 | ||||
| Prepaid Rent | 6,600 | |||
| Supplies | 1,570 | |||
| Wages Payable | _ | |||
| Unearned Fees | 7,220 | |||
| Fees Earned | 305,490 | |||
| Wages Expense | 103,050 | |||
| Rent Expense | _ | |||
| Depreciation Expense | _ | |||
| Supplies Expense | _ |
Data needed for year-end adjustments are as follows:
- Supplies on hand at November 30, $470.
- Depreciation of equipment during year, $780.
- Rent expired during year, $4,810.
- Wages accrued but not paid at November 30, $1,520.
- Unearned fees at November 30, $3,030.
- Unbilled fees at November 30, $3,610.
Required:
Question Content Area
1. Journalize the six
| Nov. 30 |
|
Supplies Expense | |
|
|
Supplies | ||
| 30 |
|
Depreciation Expense | |
|
|
Accumulated Depreciation - Equipment | ||
| 30 |
|
Rent Expense | |
|
|
Prepaid Rent | ||
| 30 |
|
Wages Expense | |
|
|
Wages Payable | ||
| 30 |
|
Unearned Fees | |
|
|
Fees Earned | ||
| 30 |
|
Accounts Receivable | |
|
|
Fees Earned |
Feedback Area
1. Keep in mind that you will be making an adjusting entry for each of these that affects at least one income statement account (revenue or expense) and one balance sheet account (asset or liability). As you go through each of these, consider both sides of the transaction that results in an adjusting entry and identify related accounts. Remember, four different categories of adjusting entries include prepaid expenses (deferred expenses), unearned revenues (deferred revenues), accrued expenses (accrued liabilities), and accrued revenues (accrued assets) plus the adjustment for depreciation expense.
Question Content Area
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.
| Fees earned |
|
by $fill in the blank d37edafd4fcefa9_2 |
| Depreciation expense |
|
by $fill in the blank d37edafd4fcefa9_4 |
| Net income |
|
by $fill in the blank d37edafd4fcefa9_6 |
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.
| Accumulated depreciation |
|
by $fill in the blank d37edafd4fcefa9_8 |
| Total assets |
|
by $fill in the blank d37edafd4fcefa9_10 |
| Unearned fees |
|
by $fill in the blank d37edafd4fcefa9_12 |
| Total liabilities |
|
by $fill in the blank d37edafd4fcefa9_14 |
| Owner's equity |
|
by $fill in the blank d37edafd4fcefa9_16 |
| Total liabilities and owner's equity |
|
by $fill in the blank d37edafd4fcefa9_18 |
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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