Adjusting Entries Selected account balances before adjustment for Intuit Realtyy

Question

Adjusting Entries Selected account balances before adjustment for Intuit Realtyy at November 30, the end of the current year, follow Deblts $71,760 111,000 Credits Accounts Receivable Equipment Accumulated Depreciation - Equipment $11,050 Prepaid Rent 9,000 Supplies 2,150 Wages Payable Unearned Fees 9,900 419,080 Fees Earned Wages Expense Rent Expense 141,370 Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: . Supplies on hand at November 30, $650. . Depreciation of equipment during year $1,080. . Rent expired during year, $6,600 . Wages accrued but not paid at November 30, $2,080. e Unearned fees at November 30, $4,160

Explanation / Answer

1. Journal Entries of adjusting entries: Date Accounts Titles Debit $ Credit $ 30-Nov Supplies expense 1500 Supplies   1500 30-Nov Depreciation Expense 1080 Acc. Dep. - Equipment 1080 30-Nov Rent expense 6600 Prepaid Rent 6600 30-Nov Wages expense 2080 wages payable 2080 30-Nov Unearned fees 5740 Fees earned 5740 30-Nov AR 4950 Fees earned 4950 2) Effect on Income Statement: Fees earned increases 4950 Depreciation expense same 0 Net Income decreases 5230 3) Effect on Balance sheet: Accumulated Dep same 0 Total Assets decreases 3150 (ie. -1500-6600+4950) Unearned fees same 0 total liabilities increases 2080 Retained earnings decreases 5230 Total liabilities and SH Eq. decreases 3150 (ie. 2080-5230) 4) The effect on "net increase or decrease in cash " on the Statement of cash flows: Increases by $1070 (ie. 1500+6600-2080-4950)

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