Instructions 1. Journalize the six adjusting entries required at November 30, based on the data presented. What would be the effect on the income statement if the adjustments for equipment depreciation and unearned fees were omitted at the end of the year? 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? What would be the effect on the "Net increase or decrease in cash" on the statement of cash flows if the adjustments for equipment depreciation and unearned fees were omitted at the end of the year?

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.