Question

On June 12, Carpenter Printing printed $18,064 in magazines for the Pierre Company.  The magazines were delivered on June 15, along with an invoice for $5,844 due July 15.  Per the contract negotiated by the Pierre Company with Carpenter Printing, $4,665 will be invoiced in July and will be due August 15; the remainder will be invoiced in August and will be due September 15.  On June 18, Cecil Advertising Agency signed a contract with Carpenter Printing to print advertisements, paying $28,166 in advance.  $9,309 in advertisements are contracted to be printed in June and $32,852 in advertisements are contracted to be printed in July.  On June 30, $13,406 of advertisements were printed and delivered to Cecil Advertising.  On June 30, $3,305of the $15,689 in supplies remaining on May 31 have not been used.

Based on these transactions alone, what is the effect on the Total Current Liabilities on the Balance Sheet on June 30?

Answer 1

Answer: Amount Effect in total Date Event Current Asset Reason June 1a magazines Sold It effect remained $18,064.. maga No effect in Current to pierre Company earning and account liability 1 receivable. Cecil Advertising June 18 $ 28,166 Increase Curvent Advance from Agency paid advance Customens is a item liability of current liability Advertisments were June 30 When goods delivered printed and delivered $13,406 Decrease in Current against advance to Cecielo advertising liability Areaved the amount dur from Customer can adjust against advance June 30 un used Supplies $3,305 Noecent incurrent If effect supplies inventory Current liability on June 30th 14760 28166 - 13,406] liability expense and supplies OX-