Question

im trying to figure out which accounts were affected by each instance and whether they are accruals or referals

Adjusting Entry Events: 1. Jim recalls finishing up a job search for Mack Brown. He forgot to bill Mack the $980 2. Hoops had worked 8 ($10/hr.) hours as of the end of June. He will not be paid until July 5. 3. An inspection of the insurance policy purchased from No State Insurance on June 12 indicates that it is a 12 month policy that included coverage for the entire month of June. Recall it was $2,400 for 12 months coverage 4. Jim brought in the water bill for June, dated July 10 for $64 The bill is due upon receipt. 5. Jim counted the supplies remaining in the supply cabinet. The supply cabinet physical count reveals that there is only $80 of supplies remaining. 6. The last payment on the note was on June 21. As of June 30, 9 days of interest at 10%, has accrued but not yet been paid. (Round the result to the nearest dollar.) 7. The car is considered to have a useful life of 48 months with $3,920 salvage value. The computer and equipment is considered to have a 3 year life (36 months) with no salvage value. Round your calculation results to the nearest whole dollar. Assume Wooly had the asset for the entire month.

i need to know if each instance would affect the income statement, balance sheet, or owners equity or any combination of the three.

Answer 1

1. This event will affect the Income statement

2. This event will affect the Income statement and this is an accrual adjustment

3. This event will affect the Income statement and this is an Deferral adjustment

4. This event will affect the Income statement and this is an accrual adjustment

5. This event will affect the Income statement and also Balance sheet as the stock will be impacted.

6. This event will affect the Income statement and this is an accrual adjustment

7. This event will affect the Income statement and also Balance sheet as it will impact depreciation in Income statement and asset value in Balance sheet.