Selected account balances before adjustment for Atlantic Coast Realty at July 31, the end of the current year, are as follows:   Debits Credits Accounts Receivable $ 79,500   Equipment 342,700   Accumulated Depreciation—Equipment   $102,700 Prepaid Rent 9,300   Supplies 3,180   Wages Payable   – Unearned Fees   14,100 Fees Earned   670,200 Wages Expense 329,600   Rent Expense –   Depreciation Expense –   Supplies Expense –     Data needed for year-end adjustments are as follows: • Unbilled fees at July 31, $10,250. • Supplies on hand at July 31, $930. • Rent expired, $5,800. • Depreciation of equipment during year, $8,750. • Unearned fees at July 31, $2,100. • Wages accrued but not paid at July 31, $4,900.     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?     Chart of Accounts     CHART OF ACCOUNTS Alantic Coast Realty General Ledger   ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Rent 15 Land 16 Equipment 17 Accumulated Depreciation-Equipment   LIABILITIES 21 Accounts Payable 22 Unearned Fees 23 Wages Payable 24 Taxes Payable   EQUITY 31 Owner’s Equity 32 Withdrawals   REVENUE 41 Fees Earned 42 Rent Revenue   EXPENSES 51 Advertising Expense 52 Insurance Expense 53 Rent Expense 54 Wages Expense 55 Supplies Expense 56 Utilities Expense 57 Depreciation Expense 59 Miscellaneous Expense     Journal     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. PAGE 10   JOURNAL ACCOUNTING EQUATION     DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1   Adjusting Entries             2                 3                 4                 5                 6                 7                 8                 9                 10                 11                 12                 13

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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Selected account balances before adjustment for Atlantic Coast Realty at July 31, the end of the current year, are as follows:
 
Debits
Credits
Accounts Receivable $ 79,500  
Equipment 342,700  
Accumulated Depreciation—Equipment   $102,700
Prepaid Rent 9,300  
Supplies 3,180  
Wages Payable  
Unearned Fees   14,100
Fees Earned   670,200
Wages Expense 329,600  
Rent Expense  
Depreciation Expense  
Supplies Expense  
 
Data needed for year-end adjustments are as follows:
Unbilled fees at July 31, $10,250.
Supplies on hand at July 31, $930.
Rent expired, $5,800.
Depreciation of equipment during year, $8,750.
Unearned fees at July 31, $2,100.
Wages accrued but not paid at July 31, $4,900.
 
  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?
 
 
Chart of Accounts
 
 
CHART OF ACCOUNTS
Alantic Coast Realty
General Ledger
  ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Prepaid Rent
15 Land
16 Equipment
17 Accumulated Depreciation-Equipment
  LIABILITIES
21 Accounts Payable
22 Unearned Fees
23 Wages Payable
24 Taxes Payable
  EQUITY
31 Owner’s Equity
32 Withdrawals
  REVENUE
41 Fees Earned
42 Rent Revenue
  EXPENSES
51 Advertising Expense
52 Insurance Expense
53 Rent Expense
54 Wages Expense
55 Supplies Expense
56 Utilities Expense
57 Depreciation Expense
59 Miscellaneous Expense
 
 
Journal
 
 
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.
PAGE 10
 
JOURNAL
ACCOUNTING EQUATION
 
  DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY
1
 
Adjusting Entries
 
 
 
 
 
 
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