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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
2
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F40c533e1-3b7b-4fde-9125-10db582db1cb%2Fd4dbb2d6-3e93-4968-8a9c-34b940529888%2Fslldf15_processed.png&w=3840&q=75)
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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