close solutoin list

Adjusting entries Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow: Debits Credits Accounts Receivable $ 75,000 Equipment 250,000 Accumulated Depreciation—Equipment $ 12,000 Prepaid Rent 12,000 Supplies 3,170 Wages Payable — Unearned Fees 10,000 Fees Earned 400,000 Wages Expense 140,000 Rent Expense — Depreciation Expense — Supplies Expense — Data needed for year-end adjustments are as follows: Supplies on hand at November 30, $550. Wages accrued but not paid at November 30, $2,000. Depreciation of equipment during year, $1,675. Unearned fees at November 30, $4,000. Rent expired during year, $8,500. 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 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?

BuyFind

Financial & Managerial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337119207
BuyFind

Financial & Managerial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337119207

Solutions

Chapter
Section
Chapter 3, Problem 3.2BPR
Textbook Problem

Adjusting entries

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

Debits Credits
Accounts Receivable $ 75,000
Equipment 250,000
Accumulated Depreciation—Equipment $ 12,000
Prepaid Rent 12,000
Supplies 3,170
Wages Payable
Unearned Fees 10,000
Fees Earned 400,000
Wages Expense 140,000
Rent Expense
Depreciation Expense
Supplies Expense

Data needed for year-end adjustments are as follows:

  • Supplies on hand at November 30, $550.
  • Wages accrued but not paid at November 30, $2,000.
  • Depreciation of equipment during year, $1,675.
  • Unearned fees at November 30, $4,000.
  • Rent expired during year, $8,500.
  • Unbilled fees at November 30, $5,380

Instructions

  1. 1. Journalize the six adjusting entries required at November 30, based on the data presented.
  2. 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. 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?
  4. 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?

Expert Solution

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 3 Solutions

Financial & Managerial Accounting
Show all chapter solutions
Ch. 3 - Account requiring adjustment Indicate with a Yes...Ch. 3 - Type of adjustment Classify the following items as...Ch. 3 - Adjustment for accrued revenues At the end of the...Ch. 3 - Adjustment for accrued expense Prospect Realty Co....Ch. 3 - Adjustment for unearned revenue On June 1, 2018,...Ch. 3 - Adjustment for prepaid expense The prepaid...Ch. 3 - Adjustment for depreciation The estimated amount...Ch. 3 - Effect of omitting adjustments For the year ending...Ch. 3 - Effect of errors on adjusted trial balance For...Ch. 3 - Classifying types of adjustments Classify the...Ch. 3 - Classifying adjusting entries The following...Ch. 3 - Adjusting entry for accrued fees At the end of the...Ch. 3 - Effect on omitting adjusting entry The adjusting...Ch. 3 - Adjusting entries for accrued salaries Garcia...Ch. 3 - Determining wages paid The wages payable and wages...Ch. 3 - Effect of omitting adjusting entry Accrued...Ch. 3 - Effect of omitting adjusting entry When preparing...Ch. 3 - Adjusting entries for unearned fees The balance in...Ch. 3 - Effect of omitting adjusting entry At the end of...Ch. 3 - Adjusting entry for supplies The balance in the...Ch. 3 - Determining supplies purchased The supplies and...Ch. 3 - Effect of omitting adjusting entry At March 31,...Ch. 3 - Adjusting entries for prepaid insurance The...Ch. 3 - Adjusting entries for prepaid insurance The...Ch. 3 - Adjusting entries for unearned and accrued fees...Ch. 3 - Adjusting entries for p repaid and accrued taxes...Ch. 3 - Adjustment for depreciation The estimated amount...Ch. 3 - Determining fixed assets book value The balance in...Ch. 3 - Book value of fixed assets In a recent balance...Ch. 3 - Effect s of errors on financial statements For a...Ch. 3 - Effects of errors on financial statements For a...Ch. 3 - Effects of errors on financial statements The...Ch. 3 - Effects of errors on financial statements If the...Ch. 3 - Adjusting entries for depreciation; effect of...Ch. 3 - Adjusting entries from trial balances The...Ch. 3 - Adjusting entries from trial balances The...Ch. 3 - Adjusting entries On March 31, the following data...Ch. 3 - Adjusting entries Selected account balances before...Ch. 3 - Adjusting entries Reliable Repairs Service, an...Ch. 3 - Adjusting entries Good Note Company specializes in...Ch. 3 - Adjusting entries and adjusted trial balances...Ch. 3 - Adjusting entries and errors At the end of April,...Ch. 3 - Adjusting entries On May 31, the following data...Ch. 3 - Adjusting entries Selected account balances before...Ch. 3 - Adjusting entries Crazy Mountain Outfitters Co.,...Ch. 3 - Adjusting entries The Signage Company specializes...Ch. 3 - Adjusting entries and adjusted trial balances...Ch. 3 - Adjusting entries and errors At the end of August,...Ch. 3 - The unadjusted trial balance that you prepared for...Ch. 3 - Continuing Company AnalysisAmazon: Vertical...Ch. 3 - Chipotle: Vertical analysis Chipotle Mexican...Ch. 3 - Nike: Vertical analysis The following data are...Ch. 3 - ATT and Verizon: Vertical analysis The following...Ch. 3 - Ethics in Action Chris P. Bacon is the chief...Ch. 3 - Communication Delta Air Lines is a major passenger...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
What is a VPN?

Accounting Information Systems

BALANCE SHEET The assets of Dallas Associates consist entriely of current assets and net plant and equipment. ...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)