Refer to the information in E3-10. a. On November 28, 2012, Shocker receives a $3,000 payment from

Question:

Refer to the information in E3-10.
a. On November 28, 2012, Shocker receives a $3,000 payment from a customer for services to be rendered evenly over the next three months. Unearned Revenue is credited.
b. On December 1, 2012, the company pays a local radio station $2,400 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited.
c. Employee salaries for the month of December totaling $7,000 will be paid on January 7, 2013.
d. On August 31, 2012, Shocker borrows $60,000 from a local bank. A note is signed with principal and 8% interest to be paid on August 31, 2013.
Required:
For each of the adjustments recorded in E3-10, indicate by how much the assets, liabilities, and stockholders' equity in the December 31, 2012, is higher or lower if the adjustment is not recorded?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...