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.

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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13
eBook
Mc
Graw
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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 $44,000 for a 1-year lease beginning April 1.
b. Paid $4,500 to purchase supplies. At year end, $1,600 of supplies remained.
c. Received a $63,000 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
(44,000) +
+
+
+
+
Assets
Supplies
+
+
+
+
+
Balance Sheet
Prepaid
Rent
44,000 =
II
Liabilities
Unearned
Revenue
< Prev
+
+
+
+
+
+
13 of 17
Stockholders' Equity
Retained
Earnings
Common
Stock
MacBook Air
+
+
+
+
+
Next >
tr
Revenue
Income Statement
Expenses =
11
II II
||||||
Net Income
Stateme
FI
Transcribed Image Text:13 eBook Mc Graw Hill 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 $44,000 for a 1-year lease beginning April 1. b. Paid $4,500 to purchase supplies. At year end, $1,600 of supplies remained. c. Received a $63,000 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 (44,000) + + + + + Assets Supplies + + + + + Balance Sheet Prepaid Rent 44,000 = II Liabilities Unearned Revenue < Prev + + + + + + 13 of 17 Stockholders' Equity Retained Earnings Common Stock MacBook Air + + + + + Next > tr Revenue Income Statement Expenses = 11 II II |||||| Net Income Stateme FI
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