At the end of the current year, $59,500 of fees have been earned but have not been billed to clients. Required:A.Journalize the adjusting entry to record the accrued fees on December 31. Refer to the Chart of Accounts for exact wording of account titles.B.If the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary?CHART OF ACCOUNTSGeneral Ledger ASSETS11Cash12Accounts Receivable13Supplies14Prepaid Insurance15Land16Equipment17Accumulated Depreciation-Equipment LIABILITIES21Accounts Payable22Unearned Fees23Salaries Payable24Taxes Payable EQUITY31Common Stock32Retained Earnings33Dividends REVENUE41Fees Earned EXPENSES51Advertising Expense52Insurance Expense53Rent Expense54Salary Expense55Supplies Expense56Utilities Expense57Depreciation Expense59Miscellaneous Expense A. Joumalize the adjusting entry to record the accrued fees on December 31. Refer to the Chart of Accounts for exact wording of account titles.Question not attempted.PAGE 1JOURNALACCOUNTING EQUATIONDATEDESCRIPTIONPOST, REF.DEBITCREDITASSETSLIABILITIESEQUITYAdjusting Entries2

Answered: At the end of the current year, $59,500…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At the end of the current year, $59,500 of fees have been earned but have not been billed to clients.

	Required:
A.	Journalize the adjusting entry to record the accrued fees on December 31. Refer to the Chart of Accounts for exact wording of account titles.
B.	If the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary?

CHART OF ACCOUNTSGeneral Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Insurance
15	Land
16	Equipment
17	Accumulated Depreciation-Equipment

	LIABILITIES
21	Accounts Payable
22	Unearned Fees
23	Salaries Payable
24	Taxes Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned

	EXPENSES
51	Advertising Expense
52	Insurance Expense
53	Rent Expense
54	Salary Expense
55	Supplies Expense
56	Utilities Expense
57	Depreciation Expense
59	Miscellaneous Expense

A. Joumalize the adjusting entry to record the accrued fees on December 31. Refer to the Chart of Accounts for exact wording of account titles.
Question not attempted.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST, REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
Adjusting Entries
2

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