Transaction Analysis and Adjustments Selected accounts of Ideal Properties Inc., a real estate management firm, are shown below as of January 31, before any adjustments have been made: Unadjusted Account Balances Prepaid insurance $6,660 Supplies 1,930 Office equipment 5,952 Unearned rent revenue 5,250 Salaries expense 3,100 Rent revenue 15,000 Monthly financial statements are prepared. Using the Transaction Analysis Template, determine the financial statement effect of the following adjustments as of January 31: a. Prepaid Insurance represents a three-year premium paid on January 1. b. Supplies of $850 were on hand January 31. c. Office equipment is expected to last eight years. Depreciation is recorded monthly. d. On January 1, the firm collected six months' rent in advance from a tenant renting space for $875 per month. e. Accrued salaries not recorded as of January 31 are $490. Note: Use negative signs with answers, when appropriate. Balance Sheet Income Statement Stockholders' Transaction Assets Liabilities Equity Expenses = Net Income Revenues a. Adjustment for prepaid insurance. b. Adjustment for supplies C. Adjustment for office equipment. d. Adjustment for rent collected in advance. e. Adjustment for accrued salaries.
Transaction Analysis and Adjustments Selected accounts of Ideal Properties Inc., a real estate management firm, are shown below as of January 31, before any adjustments have been made: Unadjusted Account Balances Prepaid insurance $6,660 Supplies 1,930 Office equipment 5,952 Unearned rent revenue 5,250 Salaries expense 3,100 Rent revenue 15,000 Monthly financial statements are prepared. Using the Transaction Analysis Template, determine the financial statement effect of the following adjustments as of January 31: a. Prepaid Insurance represents a three-year premium paid on January 1. b. Supplies of $850 were on hand January 31. c. Office equipment is expected to last eight years. Depreciation is recorded monthly. d. On January 1, the firm collected six months' rent in advance from a tenant renting space for $875 per month. e. Accrued salaries not recorded as of January 31 are $490. Note: Use negative signs with answers, when appropriate. Balance Sheet Income Statement Stockholders' Transaction Assets Liabilities Equity Expenses = Net Income Revenues a. Adjustment for prepaid insurance. b. Adjustment for supplies C. Adjustment for office equipment. d. Adjustment for rent collected in advance. e. Adjustment for accrued salaries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I'm having difficulty with this question, by getting the rest of the values from the given prices, as well as understanding where to place some of the prices.
Transcribed Image Text:Transaction Analysis and Adjustments
Selected accounts of Ideal Properties Inc., a real estate management firm, are shown below as of January 31, before any adjustments have been made:
Unadjusted
Асcount
Balances
Prepaid insurance
$6,660
Supplies
1,930
Office equipment
5,952
Unearned rent revenue
5,250
Salaries expense
3,100
Rent revenue
15,000
Monthly financial statements are prepared. Using the Transaction Analysis Template, determine the financial statement effect of the
following adjustments as of January 31:
a. Prepaid Insurance represents a three-year premium paid on January 1.
b. Supplies of $850 were on hand January 31.
c. Office equipment is expected to last eight years. Depreciation is recorded monthly.
d. On January 1, the firm collected six months' rent in advance from a tenant renting space for $875 per month.
e. Accrued salaries not recorded as of January 31 are $490.
Note: Use negative signs with answers, when appropriate.
Balance Sheet
Income Statement
Stockholders'
Transaction
Assets
Liabilities
Equity
Revenues
Expenses
= Net Income
+
a. Adjustment for prepaid insurance.
b. Adjustment for supplies
c. Adjustment for office equipment.
d. Adjustment for rent collected in advance.
e. Adjustment for accrued salaries.
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