llected $1,200 rent for the period December 1 of the current year to April venue on December 1. rchased a machine for $32,000 cash on January 1. The company estimate d $5,000 for a two-year insurance premium on July 1 of the current year; Balance Sheet Income Statement
llected $1,200 rent for the period December 1 of the current year to April venue on December 1. rchased a machine for $32,000 cash on January 1. The company estimate d $5,000 for a two-year insurance premium on July 1 of the current year; Balance Sheet Income Statement
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Vipulb
![In each of the following transactions (a) through (c) for Catena's Marketing Company, indicate the effect of the adjusting entry on the
elements of the balance sheet and income statement.
Note: Reductions in account balances should be indicated with a minus sign.
a. Collected $1,200 rent for the period December 1 of the current year to April 1 of next year, which was credited to Unearned Rent
Revenue on December 1.
b. Purchased a machine for $32,000 cash on January 1. The company estimates annual depreciation at $3,200.
c. Paid $5,000 for a two-year insurance premium on July 1 of the current year; debited Prepaid Insurance for that amount.
Transaction
a
b
C
P
Assets
Balance Sheet
Liabilities
Stockholders'
Equity
Revenues
Income Statement
Expenses
Net Income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa60bc0c5-0237-4f62-841e-f9985bf92d33%2F684391fb-abd9-4562-b294-c2b06d228c9c%2Fjk4lkoi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In each of the following transactions (a) through (c) for Catena's Marketing Company, indicate the effect of the adjusting entry on the
elements of the balance sheet and income statement.
Note: Reductions in account balances should be indicated with a minus sign.
a. Collected $1,200 rent for the period December 1 of the current year to April 1 of next year, which was credited to Unearned Rent
Revenue on December 1.
b. Purchased a machine for $32,000 cash on January 1. The company estimates annual depreciation at $3,200.
c. Paid $5,000 for a two-year insurance premium on July 1 of the current year; debited Prepaid Insurance for that amount.
Transaction
a
b
C
P
Assets
Balance Sheet
Liabilities
Stockholders'
Equity
Revenues
Income Statement
Expenses
Net Income
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