Question
Assessing Financial Statement Effects of Transactions and Adjustments Selected accounts of Piotroski Properties, a real estate management firm, are shown below as of January 31,
Assessing Financial Statement Effects of Transactions and Adjustments
Selected accounts of Piotroski Properties, a real estate management firm, are shown below as of January 31, before any accounts have been adjusted.
DebitsCreditsPrepaid Insurance$13,320Supplies3,860Office Equipment11,904Unearned Rent Revenue$10,500Salaries Expense6,200Rent Revenue30,000
Piotroski 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 three-year premium paid on January 1.
(b) Supplies of $850 were still available on January 31.
(c) Office equipment is expected to last eight years (or 96 months).
(d) The unearned rent revenue represents six months of rent received in advance on January 1.
(e) Salaries of $980 have been earned by employees but yet not recorded as of January 31.
Balance Sheet
TransactionCash
Asset+Noncash
Assets=Liabilities+Contributed
Capital+Earned
Capital(a)Answer
Answer
Answer
Answer
Answer
(b)Answer
Answer
Answer
Answer
Answer
(c)Answer
Answer
Answer
Answer
Answer
(d)Answer
Answer
Answer
Answer
Answer
(e)Answer
Answer
Answer
Answer
Answer
Income Statement
Revenue
-
Expenses
=
Net IncomeAnswer
Answer
Answer
Answer
Answer
Answer
Answer
Answer
Answer
Answer
Answer
Answer
Answer
Answer
Answer
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
Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Lawrence Tomassini
5th Edition
0077282078, 9780077282073
