Jordan Company’s annual accounting year ends on December 31. It is now December 31, 2018, and all of the 2018 entries have been made except for the following:
Required:
Determine the accounting equation effects of each required adjustment. TIP: The first transaction is done for you as an example. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.)
Accounting equation
Assets | = | Liabilities | + | Stockholder's equity | ||||
a | Interest payable | 900 | Interest expense | -900 | ||||
b | Deferred rent revenue (7800/6*4) | -5200 | Rent revenue | 5200 | ||||
c | account receivable | 4300 | Service revenue | 4300 | ||||
d | Prepaid insurance | -900 | Insurance expense | -900 | ||||
e | wages payable | 2100 | wages expense | -2100 | ||||
f | Accumulated depreciation | -2000 | Depreciation expense | -2000 | ||||
g | Income tax payable | 6000 | Income tax expense | -6000 | ||||
Jordan Company’s annual accounting year ends on December 31. It is now December 31, 2018, and...
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