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Record each of the following events in the horizontal statements model. After each event, record the corresponding December 31 end- of-year adjustment that would be necessary. Required: a. Paid $50,000 for a 1-year lease beginning April 1. b. Paid $3,400 to purchase supplies. At year end, $1,300 of supplies remained. c. Received a $57,000 cash advance for a 6-month contract beginning on September 1. Note: Enter any decreases to account balances with a minus sign. Leave cells blank if no input is needed. Event or Adjustment a. a. Adjust b. b. Adjust C. c. Adjust Cash + Assets Supplies + + + + + + Balance Sheet Prepaid Rent = = = Liabilities Unearned Revenue + + Stockholders' Equity Common Stock + + Retained Earnings Revenue Income Statement Expenses = Net Income B = = Statement of Cash Flows

Record each of the following events in the horizontal statements model. After each event, record the corresponding December 31 end- of-year adjustment that would be necessary. Required: a. Paid $50,000 for a 1-year lease beginning April 1. b. Paid $3,400 to purchase supplies. At year end, $1,300 of supplies remained. c. Received a $57,000 cash advance for a 6-month contract beginning on September 1. Note: Enter any decreases to account balances with a minus sign. Leave cells blank if no input is needed. Event or Adjustment a. a. Adjust b. b. Adjust C. c. Adjust Cash + Assets Supplies + + + + + + Balance Sheet Prepaid Rent = = = Liabilities Unearned Revenue + + Stockholders' Equity Common Stock + + Retained Earnings Revenue Income Statement Expenses = Net Income B = = Statement of Cash Flows

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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Record each of the following events in the horizontal statements model. After each event, record the corresponding December 31 end- of-year adjustment that would be necessary. Required: a. Paid $50,000 for a 1-year lease beginning April 1. b. Paid $3,400 to purchase supplies. At year end, $1,300 of supplies remained. c. Received a $57,000 cash advance for a 6-month contract beginning on September 1. Note: Enter any decreases to account balances with a minus sign. Leave cells blank if no input is needed. Event or Adjustment a. a. Adjust b. b. Adjust C. c. Adjust Cash + + + + + + + Assets Supplies + + + + + Balance Sheet Prepaid Rent II ||| || Liabilities Unearned Revenue + + + + + Stockholders' Equity Common Stock + + + + + + + Retained Earnings Revenue Income Statement Expenses || ||| Net Income Statement of Cash Flows
Transcribed Image Text:Record each of the following events in the horizontal statements model. After each event, record the corresponding December 31 end- of-year adjustment that would be necessary. Required: a. Paid $50,000 for a 1-year lease beginning April 1. b. Paid $3,400 to purchase supplies. At year end, $1,300 of supplies remained. c. Received a $57,000 cash advance for a 6-month contract beginning on September 1. Note: Enter any decreases to account balances with a minus sign. Leave cells blank if no input is needed. Event or Adjustment a. a. Adjust b. b. Adjust C. c. Adjust Cash + + + + + + + Assets Supplies + + + + + Balance Sheet Prepaid Rent II ||| || Liabilities Unearned Revenue + + + + + Stockholders' Equity Common Stock + + + + + + + Retained Earnings Revenue Income Statement Expenses || ||| Net Income Statement of Cash Flows
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