The Jamesway Corporation had the following situations on December 2021. Employee salaries for the month of December totaling $16,000 will be paid on January 7, 2022. On August 31, 2021, Jamesway borrowed $60,000 from a local bank. A note was signed with principal and 8% interest to be paid on August 31, 2022. If none of the adjusting journal entries were recorded, would assets, liabilities, and shareholders’ equity on the 12/31/2021 balance sheet be higher or lower and by how much? This is the question I am stuck on. Does the employees salaries not factor in the December 2021 figures because the employees are paid on January 2022? How do I figure the amounts of liability and equity affected for number two, the note with 8% interest?
The Jamesway Corporation had the following situations on December 2021. Employee salaries for the month of December totaling $16,000 will be paid on January 7, 2022. On August 31, 2021, Jamesway borrowed $60,000 from a local bank. A note was signed with principal and 8% interest to be paid on August 31, 2022. If none of the adjusting journal entries were recorded, would assets, liabilities, and shareholders’ equity on the 12/31/2021 balance sheet be higher or lower and by how much? This is the question I am stuck on. Does the employees salaries not factor in the December 2021 figures because the employees are paid on January 2022? How do I figure the amounts of liability and equity affected for number two, the note with 8% interest?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The Jamesway Corporation had the following situations on December 2021.
- Employee salaries for the month of December totaling $16,000 will be paid on January 7, 2022.
- On August 31, 2021, Jamesway borrowed $60,000 from a local bank. A note was signed with principal and 8% interest to be paid on August 31, 2022.
If none of the
This is the question I am stuck on. Does the employees salaries not factor in the December 2021 figures because the employees are paid on January 2022? How do I figure the amounts of liability and equity affected for number two, the note with 8% interest?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education