Question
At December month-end, Northstar Corp. gathered the information listed below for the preparation of adjusting entries. Indicate whether the required adjusting entry for each item
At December month-end, Northstar Corp. gathered the information listed below for the preparation of adjusting entries. Indicate whether the required adjusting entry for each item would cause an increase (+ ), decrease (-), or has no effect (NE) on each of the components of the accounting equation. If a transaction causes a decrease in one component of the accounting equation and also an increase in the same component but in a different account, select (+/-). E a) Of the consulting fees Northstar Corp. received in advance. $1.700 has been earned. b) $1,750 of the rent paid to Northstar Corp. in advance has been earned. c) The monthly depreciation on the equipment is $170. d) The estimated monthly depreciation on the building is $110. ) Property taxes of $700 have accrued but are unrecorded. f) $1.500 of the insurance policv purchased in advance has expired. g) $4,500 of the insurance policy purchased in advance has expired. h) Unrecorded and uncollected consulting fees at the end of the month were $1,500. 1) $4,400 of the television advertising paid for in advance has been used. j) Interest of $230 on notes receivable is unrecorded and unpaid k) $4,000 of the rent paid in advance has expired. 1) A review of the $18,000 unadjusted balance in the supplies account shows a balance on hand at the end of the month of $17 550 m) Interest of $450 has accrued on a note payable but is unrecorded. n) S900 of the advertising paid for in advance has been published by the newspaper. 0) The estimated monthly depreciation on the furniture is $270.
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