Question

Question 1 Notcore varied out of 56. Assessing Financial Statement Effects of Adjustments For each of the following separate stations, prepare the necessary accounting adjustments using the financial statement effects template ai Unrecorded depreciation on equipment is 5720 The supplies account has a balance of 53870. Supplies s avable at the end of the period total $1,100 On the date for preparing financial statements, an estimated ties expense of $430 has been incurred, but no utility bill has yet been received or on the first day of the current period, rent for four periods was paid and recorded as a 53 200 increased to prepaid rent and a $3.200 decreased to cart Nine months aga, a one year service policy was sold to a customer and the seller recorded the cash received by crediting unearned revenue for 51872. No accounting adjustments have been prepared during the month period. The seer is now preparing annual financial statement At the end of the period employee wages of $965 have been incurred but not pad or recorded A the end of the period of interest has been earned but not yet received or recorded Use with a when appropriate

Answer 1

Ans 1 Balance Sheet Income Statement | Transaction Cash Assets Liabilities Non Cash Assets ($720) = Contributed Capital Revenue b ($2,770) + + = $430 + Earned Capital ($720) ($2,770) ($430) ($3,200)| $1,404 ($965) $3,000 Expense - Net Income $720 = 1 ($720) $2,770 = ($2,770) $430 = ($430) $3,200 = ($3,200) = $1,404 $965 = ($965) = $300 I d ($3,200) + - - - $1,404 - - 300|-| = = = + + + + ($1,404) $965 + + & $300 + Working Transaction b ($3870-$1100) = $2770 Transaction e ($1872/12x9) = $1404