a. Depreciation on the company's wind turbine equipment for the year is $6,500. b. The Prepaid Insurance account for the solar panels had a $3,500 debit balance at December 31 before adjusting for the costs of any expired coverage. Analysis of prepaid insurance shows that $1,350 of unexpired insurance coverage remains at year-end. c. The company received $7,500 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, $2,700 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, $550 of interest revenue from investments in socially responsible bonds. The interest revenue is expected to be received on January 12. For each of the above separate cases, determine the financial statement impact of each required year-end adjusting entry. Fill in the table below by indicating the amount and direction (+) increase or (-) decrease) of the effect. Adjusting Entry 8 b C d. 0 Net Income Total Assets Total Liabilities
a. Depreciation on the company's wind turbine equipment for the year is $6,500. b. The Prepaid Insurance account for the solar panels had a $3,500 debit balance at December 31 before adjusting for the costs of any expired coverage. Analysis of prepaid insurance shows that $1,350 of unexpired insurance coverage remains at year-end. c. The company received $7,500 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, $2,700 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, $550 of interest revenue from investments in socially responsible bonds. The interest revenue is expected to be received on January 12. For each of the above separate cases, determine the financial statement impact of each required year-end adjusting entry. Fill in the table below by indicating the amount and direction (+) increase or (-) decrease) of the effect. Adjusting Entry 8 b C d. 0 Net Income Total Assets Total Liabilities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:a. Depreciation on the company's wind turbine equipment for the year is $6,500.
b. The Prepaid Insurance account for the solar panels had a $3,500 debit balance at December 31 before adjusting for
the costs of any expired coverage. Analysis of prepaid insurance shows that $1,350 of unexpired insurance
coverage remains at year-end.
c. The company received $7,500 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, $2,700 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, $550 of interest revenue from investments in
socially responsible bonds. The interest revenue is expected to be received on January 12.
For each of the above separate cases, determine the financial statement impact of each required year-end adjusting entry. Fill in the
table below by indicating the amount and direction ((+) Increase or (-) decrease) of the effect.
Adjusting Entry
8
b.
C
d
0.
Net Income
Total Assets
Total Liabilities
![51
lies to the questions displayed below.]
pany's wind turbine equipment for the year is $6,500.
ccount for the solar panels had a $3,500 debit balance at December 31 before adjusting for
coverage. Analysis of prepaid insurance shows that $1,350 of unexpired insurance
ir-end.
$7,500 cash in advance for sustainability consulting work. As of December 31, one-third of
ting work had been performed.
00 in wages expense for the organic produce workers has been incurred but not yet paid.
company has earned, but not yet recorded, $550 of interest revenue from investments in
ds. The interest revenue is expected to be received on January 12.
as, determine the financial statement impact of each required year-end adjusting entry. Fill in the
it and direction ((+) increase or (-) decrease) of the effect.
Income
Total Assets
Total Liabilities
Total Equity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcebd4779-0d77-4934-b7cd-970817cc004d%2Fea87cf42-0228-4aed-b3c1-16ef18ff7686%2Fcklizej_processed.jpeg&w=3840&q=75)
Transcribed Image Text:51
lies to the questions displayed below.]
pany's wind turbine equipment for the year is $6,500.
ccount for the solar panels had a $3,500 debit balance at December 31 before adjusting for
coverage. Analysis of prepaid insurance shows that $1,350 of unexpired insurance
ir-end.
$7,500 cash in advance for sustainability consulting work. As of December 31, one-third of
ting work had been performed.
00 in wages expense for the organic produce workers has been incurred but not yet paid.
company has earned, but not yet recorded, $550 of interest revenue from investments in
ds. The interest revenue is expected to be received on January 12.
as, determine the financial statement impact of each required year-end adjusting entry. Fill in the
it and direction ((+) increase or (-) decrease) of the effect.
Income
Total Assets
Total Liabilities
Total Equity
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