For each of the following separate situations, prepare the necessary adjustments (a) using the financial statement effects template
1. Unrecorded depreciation on equipment is $610.
2. On the date for preparing financial statements, an estimated
utilities expense of $390 has been incurred, but no utility bill
has yet been received or paid.
3. On the first day of the current period, rent for four periods
was paid and recorded as a $2,800 debit to Prepaid Rent and a
$2,800 credit to Cash.
4. Nine months ago, The Hartford Financial Services Group sold a
one-year policy to a customer and recorded the receipt of the
premium by debiting Cash for $624 and crediting Contract
Liabilities for $624. No adjusting entries have been prepared
during the nine-month period. Hartford's annual financial
statements are now being prepared.
5. At the end of the period, employee wages of $965 have been
incurred but not yet paid or recorded.
6. At the end of the period, $300 of interest income has been
earned but not yet received or recorded.
Balance Sheet | Income Statement | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Transaction | Cash Asset | + | Noncash Asset |
- | Contra Asset |
= | Liabilities | + | Contrib. Capital |
+ | Earned Capital |
Revenues | - | Expenses | = | Net Income | |
(1) Adjusting entry for depreciation: equipment | + | - | = | + | + | - | = | ||||||||||
(2) Adjusting entry for utilities expense | + | - | = | + | + | - | = | ||||||||||
(3) Adjusting entry for rent expense | + | - | = | + | + | - | = | ||||||||||
(4) Adjusting entry for premium revenues | + | - | = | + | + | - | = | ||||||||||
(5) Adjusting entry for wage expense | + | - | = | + | + | - | = | ||||||||||
(6) Adjusting entry for interest earned | + | - | = | + | + | - | = |
Balance | Sheet | Income | Statement | ||||||||||||||
Transaction | Cash Asset | + | Non Cash Asset | - | Contra asset | = | Liabilities | + | Contributed Capital | + | Earned capital | Revenue | - | Expenses | = | Net Income | |
(1) Adjusting entry for depreciation: equipment | + | - | 610 | = | + | + | -610 | - | 610 | = | -610 | ||||||
(2) Adjusting entry for utilities expense | + | - | = | 390 | + | + | -390 | - | 390 | = | -390 | ||||||
(3) Adjusting entry for rent expense (2,800 / 4 ) | + | -700 | - | = | + | + | -700 | - | 700 | = | -700 | ||||||
(4) Adjusting entry for premium revenues ( 624 x 9/12 ) | + | - | = | -468 | + | + | 468 | 468 | - | = | 468 | ||||||
(5) Adjusting entry for wage expense | + | - | = | 965 | + | + | -965 | - | 965 | = | -965 | ||||||
(6) Adjusting entry for interest earned | + | 300 | - | = | + | + | 300 | 300 | - | = | 300 | ||||||
For each of the following separate situations, prepare the necessary adjustments (a) using the financial statement...
For each of the following separate situations, prepare the necessary adjustments in journal entry form. 1. Unrecorded depreciation on equipment is $610. 2. On the date for preparing financial statements, an estimated utilities expense of $390 has been incurred, but no utility bill has yet been received or paid. 3. On the first day of the current period, rent for four periods was paid and recorded as a $2,800 debit to Prepaid Rent and a $2,800 credit to Cash. 4....
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