Question

Adjusting Entries Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow: Debits Credits $54,800 Accounts Receivable Equipment 85,000 Accumulated Depreciation - Equipment $8,440 6,900 Prepaid Rent Supplies 1,640 Wages Payable Unearned Fees 7,560 Fees Earned 320,030 Wages Expense 107,960 Rent Expense Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: Supplies on hand at November 30, $490. • Depreciation of equipment during year, $820. Rent expired during year, $5,040. • Wages accrued but not paid at November 30, $1,590. • Unearned fees at November 30, $3,180. • Unbilled fees at November 30, $3,780.

Answer 1

1)	Adjusting Entries
	Particulars			Debit	Credit
a)	Supplies Expense			$ 1,150.00
	To Supplies				$ 1,150.00
	($ 1640 - $ 490)
b)	Depreciation Expense			$    820.00
	To Accumulated Depreciation				$    820.00
c)	Rent Expense			$ 5,040.00
	To Prepaid Rent				$ 5,040.00
d)	Wages Expense			$ 1,590.00
	To Wages Payable				$ 1,590.00
e)	Unearned Fees			$ 4,380.00
	To Fees Earned				$ 4,380.00
	($ 7560 - $ 3180)
f)	Accounts Receivable			$ 3,780.00
	To Fees Earned				$ 3,780.00

2)	Fees Earned		Decrease by	$ 4,380.00
	Depreciation Expense		Decrease by	$    820.00
	Net Income		Decrease by	$ 3,560.00

3)	Accumulated Depreciation			Decrease by	$    820.00
	Total Assets			Increase by	$    820.00
	Unearned Fees			Increase by	$ 4,380.00
	Total Liabilities			Increase by	$ 4,380.00
	Owner's Equity			Decrease by	$ 3,560.00
	Total Liabilities and Equity			Increase by	$    820.00

4)	The cash will remain unaffected since adjusting entries doesn't involve
	cash transactions.