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

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

Name: 63a. Depreciation on the building for the year is $6,200.b. Prepaid I
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Description: 63a. 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 reviewshows that $1,200 of unexpired insurance coverage remains at year

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Willow Creek Company purchased and installed carpet in its new general offices on April 30 for a total cost of $18,000. The carpet is estimated to have a 15-year useful life and no residual value.a. Prepare the journal entry necessary for recording the purchase of the new carpet.b. Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet, assuming that Willow Creek Company uses the straight-line method.
am. 116.
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38
Required information [The following information applies to the questions displayed below.] a. Depreciation on the company's wind turbine equipment for the year is $5,300. b. The Prepaid Insurance account for the solar panels had a $2,300 debit balance at December 31 before adjusting for the costs of any expired coverage. Analysis of prepaid insurance shows that $750 of unexpired insurance coverage remains at year-end. c. The company received $3,900 cash in advance for sustainability consulting work. As of December 31, one-third of the sustainability consulting work had been performed. d. As of December 31, $1,500 in wages expense for the organic produce workers has been incurred but not yet paid. e. As of December 31, the company has earned, but not yet recorded, $430 of interest revenue from investments in socially responsible bonds. The interest revenue is expected to be received on January 12. or each of the above separate cases, prepare the required December 31 year-end adjusting…
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