Debits Credits Accounts Receivable $ 75,000 Equipment Accumulated Depreciation-Equipment Prepaid Rent Supplies Wages Payable Unearned Fees 250,000 $ 12,000 12,000 3,170 10,000 Fees Earned 400,000 Wages Expense Rent Expense Depreciation Expense Supplies Expense 140,000
Selected account balances before adjustment for Intuit Realty at November 30, the
end of the current year, follow
Data needed for year-end adjustments are as follows:
Supplies on hand at November 30, $550.
Rent expired during year, $8,500.
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
equipment depreciation 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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