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der the following situations for Shocker: 1. On November 28, 2021, Shocker receives a $3,150 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited. 2. On December 1, 2021, the company pays a local radio station $2,430 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited. 3. Employee salaries for the month of December totaling $7,100 will be paid on January 7, 2022. 4. On August 31, 2021, Shocker borrows $61,000 from a local bank. A note is signed with principal and 9% interest to be paid on August 31, 2022. Required: Indicate by how much the assets, liabilities, and stockholders' equity in the December 31, 2021, balance sheet is higher or lower if the adjustment is not recorded. (If none of the categories apply for a particular item, leave the cell blank.) Assets 1. 2. 3. 4. Total $ 2,430 Higher 2,430 Higher ✓ ▶ X Answer is not complete. Liabilities $ 3,150 Higher $ 3,150 Higher X + Stockholders' Equity $ 1,527 Higher

der the following situations for Shocker: 1. On November 28, 2021, Shocker receives a $3,150 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited. 2. On December 1, 2021, the company pays a local radio station $2,430 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited. 3. Employee salaries for the month of December totaling $7,100 will be paid on January 7, 2022. 4. On August 31, 2021, Shocker borrows $61,000 from a local bank. A note is signed with principal and 9% interest to be paid on August 31, 2022. Required: Indicate by how much the assets, liabilities, and stockholders' equity in the December 31, 2021, balance sheet is higher or lower if the adjustment is not recorded. (If none of the categories apply for a particular item, leave the cell blank.) Assets 1. 2. 3. 4. Total $ 2,430 Higher 2,430 Higher ✓ ▶ X Answer is not complete. Liabilities $ 3,150 Higher $ 3,150 Higher X + Stockholders' Equity $ 1,527 Higher

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, 2021, Shocker receives a $3,150 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited. 2. On December 1, 2021, the company pays a local radio station $2,430 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited. 3. Employee salaries for the month of December totaling $7,100 will be paid on January 7, 2022. 4. On August 31, 2021, Shocker borrows $61,000 from a local bank. A note is signed with principal and 9% interest to be paid on August 31, 2022. Required: Indicate by how much the assets, liabilities, and stockholders' equity in the December 31, 2021, balance sheet is higher or lower if the adjustment is not recorded. (If none of the categories apply for a particular item, leave the cell blank.) 1. 2. 3. 4. Total Assets 2,430 Higher $2,430 Higher X Answer is not complete. Liabilities $3,150 Higher $ 3,150 Higher Stockholders' Equity $ 1,527 Higher
Transcribed Image Text:Consider the following situations for Shocker: 1. On November 28, 2021, Shocker receives a $3,150 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited. 2. On December 1, 2021, the company pays a local radio station $2,430 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited. 3. Employee salaries for the month of December totaling $7,100 will be paid on January 7, 2022. 4. On August 31, 2021, Shocker borrows $61,000 from a local bank. A note is signed with principal and 9% interest to be paid on August 31, 2022. Required: Indicate by how much the assets, liabilities, and stockholders' equity in the December 31, 2021, balance sheet is higher or lower if the adjustment is not recorded. (If none of the categories apply for a particular item, leave the cell blank.) 1. 2. 3. 4. Total Assets 2,430 Higher $2,430 Higher X Answer is not complete. Liabilities $3,150 Higher $ 3,150 Higher Stockholders' Equity $ 1,527 Higher
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