BALANCE SHEET						INCOME STATEMENT
a.	TRANSACTION	CASH ASSET	NONCASH ASSETS	LIABILITIES	CONTRIB CAPITAL	EARNED CAPITAL		REVENUES	EXPENSES	NET INCOME
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lOCK TuI SI,000 cash. b. Purchase inventory for $500 cash. c. Sell inventory in transaction b for $3,000 on credit. d. Receive $2,000 cash toward transaction c receivable. Exercises LO2, 3 E3-29. Assessing Financial Statement Effects of Adjustments For each of the following separate sit financial statement effects template. a. Unrecorded depreciation on equipment is $720 b. The supplies account has a balance of $3,870. Supplies still available at the end of the period total ations, prepare the necessary accounting adjustments using the ewor Home MBC c. On the date for preparing financial statements, an estimated utilities expense of $430 has been in- d. On the first day of the current period, rent for four periods was paid and recorded as a $3,200 in- e. Nine months ago, a one-year service policy was sold to a customer, and the seller recorded the $1,100 curred, but no utility bill has yet been received or paid. crease (debit) to prepaid rent and a $3,200 decrease (credit) to cash. cash received by crediting unearned revenue for $1,872. No accounting adjustments have been prepared during the nine-month period. The seller is now preparing annual financial statements. f. At the end of the period, employee wages of $965 have been incurred but not paid or recorded. g. At the end of the period, $300 of interest has been earned but not yet received or recorded