Transaction Analysis and Adjustments For each of the following unrelated situations, determine the financial statement effect using the Transaction Analysis Template: a. Equipment purchased at the beginning of the month for $33,600 on account has an estimated useful life of 4 years. One-month's depreciation on the equipment is unrecorded. b. An estimated utilities expense of $1,330 has been incurred in the current month, but the utility bill has not been received. c. On the first day of the current month, payment was made for four months rent in advance in the amount of $33,600. Monthly statements are now being prepared. d. Taylor Medical Equipment provides medical equipment for rent. A local nursing home pays $23,520 in advance for three-months rental rental of hospital beds. At the end of the current period, one month has passed. Note: Use negative signs with answers, when appropriate. Transaction a. To record depreciation. b. To record utilities. c. To record rent. d. To record revenue. Assets Balance Sheet Stockholders' = Liabilities + Equity Revenues Income Statement - Expenses = Net Income

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Transaction Analysis and Adjustments
For each of the following unrelated situations, determine the financial statement effect using the Transaction Analysis Template:
a. Equipment purchased at the beginning of the month for $33,600 on account has an estimated useful life of 4 years.
One-month's depreciation on the equipment is unrecorded.
b. An estimated utilities expense of $1,330 has been incurred in the current month, but the utility bill has not been received.
c. On the first day of the current month, payment was made for four months rent in advance in the amount of $33,600.
Monthly statements are now being prepared.
d. Taylor Medical Equipment provides medical equipment for rent. A local nursing home pays $23,520 in advance for three-months rental
rental of hospital beds. At the end of the current period, one month has passed.
Note: Use negative signs with answers, when appropriate.
Transaction
a. To record depreciation.
b. To record utilities.
c. To record rent.
d. To record revenue.
Assets
Balance Sheet
Stockholders'
= Liabilities + Equity
Revenues
Income Statement
Expenses = Net Income
Transcribed Image Text:Transaction Analysis and Adjustments For each of the following unrelated situations, determine the financial statement effect using the Transaction Analysis Template: a. Equipment purchased at the beginning of the month for $33,600 on account has an estimated useful life of 4 years. One-month's depreciation on the equipment is unrecorded. b. An estimated utilities expense of $1,330 has been incurred in the current month, but the utility bill has not been received. c. On the first day of the current month, payment was made for four months rent in advance in the amount of $33,600. Monthly statements are now being prepared. d. Taylor Medical Equipment provides medical equipment for rent. A local nursing home pays $23,520 in advance for three-months rental rental of hospital beds. At the end of the current period, one month has passed. Note: Use negative signs with answers, when appropriate. Transaction a. To record depreciation. b. To record utilities. c. To record rent. d. To record revenue. Assets Balance Sheet Stockholders' = Liabilities + Equity Revenues Income Statement Expenses = Net Income
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