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e financial statement effect u

e financial statement effect u

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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I'm having difficulty with this question, by getting the rest of the values from the given prices, as well as understanding where to place some of the prices.

**Transaction Analysis and Adjustments** For each of the following unrelated situations, determine the financial statement effect using the Transaction Analysis Template: a. Unrecorded depreciation on equipment is $610. b. The Supplies account has a balance of $2,990. Supplies on hand at the end of the period totaled $1,100. c. On the date for preparing financial statements, an estimated utilities expense of $390 has been incurred, but no utility bill has been received. d. On the first day of the current month, rent for four months was paid and recorded as a $2,800 increase to Prepaid Rent and a $2,800 decrease in Cash. Monthly statements are now being prepared. e. Nine months ago, Solid Insurance Company sold a one-year policy to a customer and recorded the receipt of the premium by increasing Cash and Unearned Premium Revenue for $624. No adjusting entries have been prepared during the nine-month period. Annual financial statements are now being prepared. f. At the end of the accounting period, employee wages of $965 have been incurred but not paid. g. At the end of the accounting period, $300 of interest has been earned but not yet received on notes receivable. *Note: Use negative signs with answers, when appropriate.* **Template for Analysis:** | Transaction | Balance Sheet | Income Statement | |-------------------------|------------------------------|------------------------------| | | Assets = Liabilities + Stockholders' Equity | Revenues - Expenses = Net Income | | a. To record depreciation. | | | | b. To record supplies. | | | | c. To record utilities. | | | | d. To record rent. | | | | e. To record revenue. | | | | f. To record wages. | | | | g. To record interest. | | | **Instructions:** - Enter your analysis in the table above by considering the effect each transaction has on the accounts. - Use the provided template to appropriately categorize changes in assets, liabilities, stockholders' equity, revenues, and expenses, affecting the net income as well. - Ensure to reflect negative changes with appropriate signs.
Transcribed Image Text:**Transaction Analysis and Adjustments** For each of the following unrelated situations, determine the financial statement effect using the Transaction Analysis Template: a. Unrecorded depreciation on equipment is $610. b. The Supplies account has a balance of $2,990. Supplies on hand at the end of the period totaled $1,100. c. On the date for preparing financial statements, an estimated utilities expense of $390 has been incurred, but no utility bill has been received. d. On the first day of the current month, rent for four months was paid and recorded as a $2,800 increase to Prepaid Rent and a $2,800 decrease in Cash. Monthly statements are now being prepared. e. Nine months ago, Solid Insurance Company sold a one-year policy to a customer and recorded the receipt of the premium by increasing Cash and Unearned Premium Revenue for $624. No adjusting entries have been prepared during the nine-month period. Annual financial statements are now being prepared. f. At the end of the accounting period, employee wages of $965 have been incurred but not paid. g. At the end of the accounting period, $300 of interest has been earned but not yet received on notes receivable. *Note: Use negative signs with answers, when appropriate.* **Template for Analysis:** | Transaction | Balance Sheet | Income Statement | |-------------------------|------------------------------|------------------------------| | | Assets = Liabilities + Stockholders' Equity | Revenues - Expenses = Net Income | | a. To record depreciation. | | | | b. To record supplies. | | | | c. To record utilities. | | | | d. To record rent. | | | | e. To record revenue. | | | | f. To record wages. | | | | g. To record interest. | | | **Instructions:** - Enter your analysis in the table above by considering the effect each transaction has on the accounts. - Use the provided template to appropriately categorize changes in assets, liabilities, stockholders' equity, revenues, and expenses, affecting the net income as well. - Ensure to reflect negative changes with appropriate signs.
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