Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At June month-end, XYZ Corporation gathered the information listed below for the preparation of adjusting entries. Indicate whether the required adjusting entry for each item

At June month-end, XYZ Corporation 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 ( +/- ). image text in transcribed

\begin{tabular}{|l|l|l|} \hline & A=L \\ \hline a) $2,800 of the television advertising paid for in advance has been used. & \\ \hline b) A building XYZ Corporation owns is rented out for $1,250 each month. The current month's rent has not been \\ received by month-end. & \\ \hline c) The estimated monthly depreciation on the furniture is $300. & \\ \hline d) Interest of $370 has accrued on a note payable but is unrecorded. & \\ \hline e) Of the rent paid to XYZ Corporation in advance, $1,000 has been earned. & \\ \hline f) $4,000 of the rent paid in advance has been used. & \\ \hline g) Consulting work performed but unrecorded at the end of the month totalled $3,250. \\ \hline h) $900 of the consulting fees paid to XYZ Corporation in advance has been earned. \\ \hline i) A review of the $54,000 unadjusted balance in the supplies account shows a balance on hand at the end of the \\ month of $53,800. & \\ \hline j) The monthly depreciation on the equipment is $450. \\ \hline k) A review of the $6,000 unadjusted balance in the prepaid rent account shows a remaining balance of $2,500 at \\ the end of the month. & \\ \hline l) This month's advertising bill for $7,500 is unrecorded and unpaid. \\ \hline m) Property taxes of $400 have accrued but are unrecorded. \\ \hline n) $12,000 of the rent paid in advance has expired. \\ \hline o) $200 of interest has accrued on a note receivable and is unrecorded. \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud Casebook Lessons From The Bad Side Of Business

Authors: Joseph T. Wells

1st Edition

0470134682, 978-0470134689

More Books

Students also viewed these Accounting questions