Question

. What would be the effect on the balance sheet if the adjustments for unbilled fees...

. 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

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

If the unbilled fees were omitted at the end of the year then in Balance Sheet it would effect Retained earnings in the Shareholders Equity head(the Retained Earnings will be understated with that amount)  and Accounts Receivable in the Assets head(the sale will be less recorded and the Accounts Receivable will be understated).

If the adjustment for accrued wages were omitted at the end of the year then in Balance Sheet it would effect Retained Earnings under the Shareholders Equity head (Retained Earnings will be overstated with that amount due to the omission of an expense in the Income statement as the profit increases) and simultaneously accrued wages under the Current Liability head will be understated due to the  omission of the Accured Wages being an expense.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Selected account balances before adjustment for Alantic Coast Realty at July 31, 2016, the end of...
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 $ 75,000 Equipment 345,700 Accumulated Depreciation—Equipment $112,500 Prepaid Rent 9,000 Supplies 3,350 Wages Payable – Unearned Fees 12,000 Fees Earned 660,000 Wages Expense 325,000 Rent Expense – Depreciation Expense – Supplies Expense – Data needed for year-end adjustments are as follows: a. Unbilled fees at July 31, $11,150. b. Supplies on hand at July...
Adjustments for Unearned and Accrued Fees The balance in the unearned fees account, before adjustment at...
Adjustments for Unearned and Accrued Fees The balance in the unearned fees account, before adjustment at the end of the year, is $540,500. Of these fees, $54,050 have been earned. In addition, $162,150 of fees have been earned but not billed to clients. What are the adjustments (a) to adjust the unearned fees account and (b) to record the accrued fees? Indicate for each account affected whether the account is increased or decreased, and the amount of the increase or...
Selected account balances before adjustment for Intuit Realty at November 30, the end of the current...
Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow: Debits Credits Accounts Receivable $56,780 Equipment 88,000 Accumulated Depreciation - Equipment $8,740 Prepaid Rent 7,200 Supplies 1,700 Wages Payable _ Unearned Fees 7,840 Fees Earned 331,600 Wages Expense 111,860 Rent Expense _ Depreciation Expense _ Supplies Expense _ Data needed for year-end adjustments are as follows: Required: Supplies on hand at November 30, $510. Depreciation of equipment during year, $850. Rent expired...
Effect of Errors on Adjusted Trial Balance For each of the following errors, considered individually, indicate...
Effect of Errors on Adjusted Trial Balance For each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much. a. The adjustment of $9,800 for accrued fees earned was journalized as a debit to Accounts Receivable for $9,800 and a credit to Fees Earned...
Balance Sheet You are evaluating the balance sheet for Cypress Corporation. From the balance sheet you...
Balance Sheet You are evaluating the balance sheet for Cypress Corporation. From the balance sheet you find the following balances: Cash and marketable securities = $520,000, Accounts receivable = $720,000, Inventory = $420,000, Accrued wages and taxes = $42,000, Accounts payable = $120,000, and Notes payable = $920,000. What is Cypress's net working capital?​
Balance Sheet You are evaluating the balance sheet for Campus Corporation. From the balance sheet you...
Balance Sheet You are evaluating the balance sheet for Campus Corporation. From the balance sheet you find the following balances: Cash and marketable securities = $392,000, Accounts receivable = $192,000, Inventory = $92,000, Accrued wages and taxes = $11,700, Accounts payable = $317,000, and Notes payable = $617,000. What is Campus's net working capital? Multiple Choice $945,700 $1,621,700 –$269,700 $676,000
Milbank Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the...
Milbank Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations: Milbank Repairs & Service Unadjusted Trial Balance June 30, 2019 Debit Balances Credit Balances Cash 12,030 Accounts Receivable 79,860 Supplies 19,240 Equipment 464,530 Accounts Payable 18,760 Unearned Fees 21,170 Nancy Townes, Capital 338,000 Nancy Townes, Drawing 15,880 Fees Earned 481,100 Wages Expense 111,620 Rent Expense 85,150 Utilities Expense 61,100 Miscellaneous Expense 9,620 859,030 859,030 For preparing the...
Which of the following accounts would NOT appear in a post-closing trial balance? Unearned Fees Accounts...
Which of the following accounts would NOT appear in a post-closing trial balance? Unearned Fees Accounts Payable Fees Eaned Cash Our company pays rent of $1,000 per month in advance for the year. At the end of each month, what would be the adjusting entry? Prepaid Rent                        1,000 Rent Expense                                   1,000 None of these answers is correct. Rent Expense                               1,000 Prepaid Rent                                          1,000 Rent Expense                        1,000      Cash                                                  1,000 You are learning the accrual basis of accounting in...
At the balance sheet date, Clarkson Company held title to goods in transit amounting to $214,000....
At the balance sheet date, Clarkson Company held title to goods in transit amounting to $214,000. This amount was omitted from the purchases figure for the year and also from the ending inventory. What is the effect of this omission on the net income for the year as calculated when the books are closed? What is the effect on the company’s financial position as shown in its balance sheet? Is materiality a factor in determining whether an adjustment for this...
Adjustment for Unearned Fees The balance in the unearned fees account, before adjustment at the end...
Adjustment for Unearned Fees The balance in the unearned fees account, before adjustment at the end of the year, is $1,375,000. What is the adjustment if the amount of unearned fees at the end of the year is $1,100,000? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease. Unearned fees $ Fees earned $
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT