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Consider the following situations for Shocker: 1. On November 28, 2024, Shocker received a $2,250 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue was credited on November 28. 2. On December 1, 2024, the company paid a local radio station $2,250 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising was debited on December 1. 3. Employee salaries for the month of December totaling $6,500 will be paid on January 7, 2025. 4. On August 31, 2024, Shocker borrowed $55,000 from a local bank. A note was signed with principal and 9% interest to be paid on August 31, 2025. Required: Iba

Consider the following situations for Shocker: 1. On November 28, 2024, Shocker received a $2,250 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue was credited on November 28. 2. On December 1, 2024, the company paid a local radio station $2,250 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising was debited on December 1. 3. Employee salaries for the month of December totaling $6,500 will be paid on January 7, 2025. 4. On August 31, 2024, Shocker borrowed $55,000 from a local bank. A note was signed with principal and 9% interest to be paid on August 31, 2025. Required: Iba

FINANCIAL ACCOUNTING
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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Consider the following situations for Shocker: 1. On November 28, 2024, Shocker received a $2,250 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue was credited on November 28. 2. On December 1, 2024, the company paid a local radio station $2,250 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising was debited on December 1. 3. Employee salaries for the month of December totaling $6,500 will be paid on January 7, 2025. 4. On August 31, 2024, Shocker borrowed $55,000 from a local bank. A note was signed with principal and 9% interest to be paid on August 31, 2025. Required: Indicate by how much the assets, liabilities, and stockholders' equity in the December 31, 2024, balance sheet is higher or lower if the adjusting entry is not recorded. (If none of the categories apply for a particular item, leave the cell blank.) 1. 2. 3. 4. Total Assets Liabilities + + + + Stockholders' Equity
Transcribed Image Text:Consider the following situations for Shocker: 1. On November 28, 2024, Shocker received a $2,250 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue was credited on November 28. 2. On December 1, 2024, the company paid a local radio station $2,250 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising was debited on December 1. 3. Employee salaries for the month of December totaling $6,500 will be paid on January 7, 2025. 4. On August 31, 2024, Shocker borrowed $55,000 from a local bank. A note was signed with principal and 9% interest to be paid on August 31, 2025. Required: Indicate by how much the assets, liabilities, and stockholders' equity in the December 31, 2024, balance sheet is higher or lower if the adjusting entry is not recorded. (If none of the categories apply for a particular item, leave the cell blank.) 1. 2. 3. 4. Total Assets Liabilities + + + + Stockholders' Equity
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