For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the drop-down.)

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Every transaction will have effects on the financial statements of the organization. The effect can be on more than one financial statement.

a. Rent :

  • Income Statement 750  
  • Balance Sheet 8250
  • Net Income 9,000 decrease

b. Insurance :

  • Income Statement 200
  • Balance Sheet 2200
  • Net Income 2,400 decrease

c. Office Supplies :

  • Income Statement 12,200  
  • Balance Sheet 1200  
  • Net Income 12,200 decrease

d. Depreciation :

  • Income Statement 500
  • Balance Sheet 26,000
  • Net Income 6,000 decrease

e. Un billed Fees :

  • Income Statement 10,690
  • Balance Sheet 1,800
  • Net Income 10,690 increase

f. Unpaid Wages :

  • Income Statement 2600  
  • Balance Sheet 2600
  • Net Income 2,600 decrease

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