Calculator Adjusting entries Chart of Accounts Journal Final Questions Selected

Question

Calculator Adjusting entries Chart of Accounts Journal Final Questions Selected account balances before adjustment for Alantic Coast Realty at July 31, 2016, the end of the current year, are as follows Debits Credits Accounts Receivable $ 74,600 348,900 $112,600 Prepaid Rent Supplies Wages Payable Unearned Fees Fees Earned Wages Expense Rent Expense Depreciation Expense Supplies Expense 9,200 3,200 14,400 679,600 338,800 Data needed for year-end adjustments are as follows a. Unbilled fees at July 31, $10,650. b. Supplies on hand at July 31, $1,100. c. Rent expired, $6,350. d. Depreciation of equipment during year, $8,550. e. Unearned fees at July 31, $2,120. f. Wages accrued but not paid at July 31, $4,890. Required All work saved

Explanation / Answer

Answer 1) 1)Journal Entries: Date Accounts Titles Debit$ Credit$ a AR 10650 Fees Earned 10650 b supplies expense 2100 Supplies   2100 (3200 - 1100) c rent expense 6350 Prepaid rent 6350 d Depreciation expense 8550 Acc Dep - Equip 8550 e AR 2120 Fees Earned 2120 f Wages expense 4890 Wages payable 4890 2) The effect on the income statement if (a) & (f) adjustment omitted: Over/Understated Amount Fees earned Understates 10650 (as adj(a) omitted) Wages expense Understates 4890 (as adj(f) omitted) Net Income Understates 5760 (as adj (a&f) omitted) 3) The effect on the balance sheet if (a) & (f) adjustment omitted: Over/Understated Amount AR Understates 10650 TA Understates 10650 Wages payable Understates 4890 TL Understates 10650 (WP 4890 + NI 5760) RE Understates 5760 Total Liabilities and Shareholder's equity Understates 5760 4) The effect on the cash flow if (a) & (f) adjustment omitted: Net increase or decrease in cash NI$5760-AR$10650+WP$4890=0 0

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