Moberly Area Community College

The following transactions were completed by Wild Trout Gallery during the current fiscal year ended December 31: Date Transaction January 19. Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $2,660 cash in full payment of Arlene's account. April 3. Wrote off the $12,750 balance owed by Premier GS Co., which is bankrupt. July 16. Received 25% of the $22,000 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible. November 23. Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $4,000 cash in full payment. December 31. Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $3,300; Fogle Co., $8,100; Lake Furniture, $11,400; Melinda Shryer, $1,200. December 31. Based on an analysis of the $2,350,000 of accounts receivable, it was estimated that $60,000 will be uncollectible. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31 had been based on an estimated expense of 1/2 of 1% of the sales of $15,800,000 for the year, determine the following: b. Balance in the allowance account after the adjustment of December 31.

Summit Services Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at May 31, the end of the fiscal year, the following balances were taken from the ledger of Summit Services: Line Item Description Amount Fees Earned $1,150,000 Dylan Jaffe, Capital 450,000 Dylan Jaffe, Drawing 5,000 Rent Expense 200,000 Supplies Expense 19,300 Wages Expense 915,000 Miscellaneous Expense 31,900 Journalize the closing entries required to close the accounts. If an amount box does not require an entry, leave it blank.

What would be the effect on the balance sheet if the adjustments for equipment depreciation and unearned fees were omitted at the end of the year? Enter all amounts as positive numbers. Line Item DescriptionEffectAmount Line Item DescriptionDebitsCredits Accounts Receivable$75,000 Equipment250,000 Accumulated Depreciation—Equipment $12,000 Prepaid Rent12,000 Supplies3,170 Wages Payable – Unearned Fees 10,000 Fees Earned 400,000 Wages Expense140,000 Rent Expense– Depreciation Expense– Supplies Expense– Data needed for year-end adjustments are as follows: • Supplies on hand at November 30, $550. • Depreciation of equipment during year, $1,675. • Rent expired during year, $8,500. • Wages accrued but not paid at November 30, $2,000. • Unearned fees at November 30, $4,000. • Unbilled fees at November 30, $5,380. Accumulated depreciation overstated 1,675