Question
Assessing Financial Statement Effects of Transactions and Adjustments Selected accounts of Portage Properties, a real estate management firm, are shown below as of January 31,
Assessing Financial Statement Effects of Transactions and Adjustments Selected accounts of Portage Properties, a real estate management firm, are shown below as of January 31, before any accounts have been adjusted.
Debit Credit
Prepaid Insurance |
| |||
|
| |||
|
| |||
|
| |||
|
| |||
| 13,250 |
Portage Properties prepares monthly financial statements. Using the following information, adjust the accounts as necessary on January 31 using the financial statements effect template. (a) Prepaid insurance represents a two-year premium paid on January 1. (b) Supplies of $710 were still available on January 31. (c) Office equipment is expected to last eight years (or 96 months). (d) Earlier this month, on January 1, Portage collected $5,550 for six months' rent in advance from a tenant renting space for $925 per month. (e) Salaries of $490 have been earned by employees but yet not recorded as of January 31.
Balance Sheet
Transaction+ Cash Asset +Non Cash Assets= Liabilities+Contributed Capital + Earned capital
Income Statement
Revenue (minus) Exspenses = Net income
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started