Exercise 4-11 (Algo) Record transactions and adjustments LO 2, 6, 7Show the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by selecting the amount and indicating whether it is an addition (+) or a subtraction (−). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting stockholders' equity. In some cases, only one column may be affected because all of the specific accounts affected by the transaction are included in that category. Transaction a has been completed as an illustration.Provided services to a client on account; revenues totaled $510.Paid an insurance premium of $480 for the coming year. An asset, Prepaid Insurance, was debited.Recognized insurance expense for one month from the premium transaction in b via a reclassification adjusting entry.Paid $750 of wages accrued at the end of the prior month.Paid $2,650 of wages for the current month.Accrued $625 of wages at the end of the current month.Received cash of $1,500 on accounts receivable accrued at the end of the prior month.Required:Indicate the financial statement effect.Prepare the journal entry for the above transactions. Journal entry worksheet3 4 5 6 7>12Record the $510 services provided to a client on account.Note: Enter debits before credits.EventGeneral JournalDebitCredita.Record entryClear entryView general journal Complete this question by entering your answers in the tabs below.Required ARequired BIndicate the financial statement effect.Balance Sheet CategoryIncome StatementTransaction/AdjustmentAssetsLiabilities+ Stockholders' EquityNet Income Effecta.+510+510b.C.d.е.f.g.Required ARequired B >

Answered: unt and indicating whether it is an…

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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Exercise 4-11 (Algo) Record transactions and adjustments LO 2, 6, 7

Show the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by selecting the amount and indicating whether it is an addition (+) or a subtraction (−). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting stockholders' equity. In some cases, only one column may be affected because all of the specific accounts affected by the transaction are included in that category. Transaction a has been completed as an illustration.

Provided services to a client on account; revenues totaled $510.
Paid an insurance premium of $480 for the coming year. An asset, Prepaid Insurance, was debited.
Recognized insurance expense for one month from the premium transaction in b via a reclassification adjusting entry.
Paid $750 of wages accrued at the end of the prior month.
Paid $2,650 of wages for the current month.
Accrued $625 of wages at the end of the current month.
Received cash of $1,500 on accounts receivable accrued at the end of the prior month.