Debits- 1.Accounts receivable
Selected account balances before adjustment for Atlantic Coast Realty at July 31, the end of the current year, are as follows:
Debits- 1.Accounts receivable ($75,000), 2.Equipment($112,500), 4. Prepaid Rent ($9,000), 5. Supplies ($3,350), 9. Wages expense ($325,000), 10. Rent expense -, 11. Depreciation expense -, 12. Supplies expense -
Credits 3, Accumulated Depreciation- Equipment ($112,500), 6. Wages Payable -, 7.Unearned fees ($12,000), 8.Fees earned ($660,000),
Data needed for year-end adjustments are as follows:
• Unbilled fees at July 31, $11,150.• Supplies on hand at July 31, $900.• Rent expired, $6,000.• Depreciation of equipment during year, $8,950.• Unearned fees at July 31, $2,000.• Wages accrued but not paid at July 31, $4,840.
Required:1. Journalize the six adjusting entries required at July 31, based on the data presented. Refer to the Chart of Accounts for exact wording of account titles.
2. What would be the effect on the income statement if the adjustments for unbilled fees and accrued wages were omitted at the end of the year?
3. What would be the effect on the balance sheet if the adjustments for unbilled fees and accrued wages 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 unbilled fees and accrued wages were omitted at the end of the year?
Answers
Status NEW
Posted 11 Jul 2017 06:07 AM
My Price 7.00
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