53 a. Depreciation on the building for the year is $6,200. b. Prepaid Insurance had a $3,200 debit balance at December 31 before adjusting for the costs of any expired coverage. A review shows that $1,200 of unexpired insurance coverage remains at year-end. c. Received $6,600 cash in advance from a client for services not yet performed. As of December 31, one-third of the work had been performed. d. As of December 31, salaries expense of $2,400 has been incurred but not yet paid. e. As of December 31, the company has earned, but not yet recorded, $520 of interest revenue. The interest revenue will be received in cash next year. For each of the separate cases, determine the financial statement impact of each required year-end adjusting entry. Fill in the table by indicating the amount and direction ((+) increase or (-) decrease) of the effect. a b. C -- d. e. Net Income Total Assets Total Liabilities Total Equity 4

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question
63
a. Depreciation on the building for the year is $6,200.
b. Prepaid Insurance had a $3,200 debit balance at December 31 before adjusting for the costs of any expired coverage. A review
shows that $1,200 of unexpired insurance coverage remains at year-end.
c. Received $6,600 cash in advance from a client for services not yet performed. As of December 31, one-third of the work had been
performed.
d. As of December 31, salaries expense of $2,400 has been incurred but not yet paid.
e. As of December 31, the company has earned, but not yet recorded, $520 of interest revenue. The interest revenue will be received
in cash next year.
For each of the separate cases, determine the financial statement impact of each required year-end adjusting entry. Fill in the table by
indicating the amount and direction ((+) increase or (-) decrease) of the effect.
a.
b.
C.
e.
Net Income
Total Assets
Total Liabilities
Total Equity
B
Transcribed Image Text:63 a. Depreciation on the building for the year is $6,200. b. Prepaid Insurance had a $3,200 debit balance at December 31 before adjusting for the costs of any expired coverage. A review shows that $1,200 of unexpired insurance coverage remains at year-end. c. Received $6,600 cash in advance from a client for services not yet performed. As of December 31, one-third of the work had been performed. d. As of December 31, salaries expense of $2,400 has been incurred but not yet paid. e. As of December 31, the company has earned, but not yet recorded, $520 of interest revenue. The interest revenue will be received in cash next year. For each of the separate cases, determine the financial statement impact of each required year-end adjusting entry. Fill in the table by indicating the amount and direction ((+) increase or (-) decrease) of the effect. a. b. C. e. Net Income Total Assets Total Liabilities Total Equity B
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Depreciation Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education