Chapter 4, Problem 4.5AP

Determining Financial Statement Effects of Adjusting Entries (P4-5)

Refer to the information regarding Bill's Catering Company in AP4-3.

  Required:

1. 1. Indicate whether each transaction relates to a deferred revenue, deferred expense, accrued revenue, or accrued expense.
2. 2. Using the following headings, indicate the effect of each adjusting entry and the amount of the effect. Use + for increase. – for decrease, and NE for no effect. (Reminder: Assets = Liabilities + Stockholders’ Equity; Revenues – Expenses = Net Income; and Net Income accounts are closed to Retained Earnings, a part of Stockholders’ Equity.)

Transaction	BALANCE SHEET			INCOME STATEMENT
	Assets	Liabilities	Stockholders’ Equity	Revenues	Expenses	Net Income
a.
b.
(etc.)