Bailey Corporation, prepares the following adjustments required at the end of the month on July 31: Before these adjustments, Bailey had assets of $70.000. Liabilities of $50,000 and Stockholders' equity of $20,000. Here are the adjustments made: a. Received a $587 utility bill for electricity usage in July to be paid in August. b. Owed wages to 2 employees who worked four days at $92 each per day at the end of July. The company will pay employees at the end of the first week of August. c On July 1, loaned money to an employee who agreed to repay the loan in one year along with $3,600 for one full year of interest. No interest has been recorded yet. After the adjustments stockholders' equity on 7/31 will be $
Bailey Corporation, prepares the following adjustments required at the end of the month on July 31: Before these adjustments, Bailey had assets of $70.000. Liabilities of $50,000 and Stockholders' equity of $20,000. Here are the adjustments made: a. Received a $587 utility bill for electricity usage in July to be paid in August. b. Owed wages to 2 employees who worked four days at $92 each per day at the end of July. The company will pay employees at the end of the first week of August. c On July 1, loaned money to an employee who agreed to repay the loan in one year along with $3,600 for one full year of interest. No interest has been recorded yet. After the adjustments stockholders' equity on 7/31 will be $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Bailey Corporation, prepares the following adjustments required at the end of the month
on July 31: Before these adjustments, Bailey had assets of $70.000. Liabilities of
$50,000 and Stockholders' equity of $20,000. Here are the adjustments made:
a. Received a $587 utility bill for electricity usage in July to be paid in August.
b. Owed wages to 2 employees who worked four days at $92 each per day at the end of July. The company will pay
employees at the end of the first week of August.
c On July 1, loaned money to an employee who agreed to repay the loan in one year along with $3,600 for one full year
of interest. No interest has been recorded yet
After the adjustments stockholders' equity on 7/31 will be $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F19c3024c-f3ae-4b0f-9dab-a165cbff4ecf%2F95f6145f-fa42-4fd8-b5f8-0cabf580ce5f%2Fednp3jn_processed.png&w=3840&q=75)
Transcribed Image Text:Bailey Corporation, prepares the following adjustments required at the end of the month
on July 31: Before these adjustments, Bailey had assets of $70.000. Liabilities of
$50,000 and Stockholders' equity of $20,000. Here are the adjustments made:
a. Received a $587 utility bill for electricity usage in July to be paid in August.
b. Owed wages to 2 employees who worked four days at $92 each per day at the end of July. The company will pay
employees at the end of the first week of August.
c On July 1, loaned money to an employee who agreed to repay the loan in one year along with $3,600 for one full year
of interest. No interest has been recorded yet
After the adjustments stockholders' equity on 7/31 will be $
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