BMW Corp. operates an automatic car wash business, Dirt Cleaners. The company's year-end is on August 31, 2021. Employees work Monday to Friday and are paid $200 each per day. There are 5 employees. Wages are deposited into the employee's bank accounts every Friday. August 31st falls on a Wednesday. Employees were last paid on August 26th, the previous Friday, for the work completed up until this date. Employees will receive their next payment on September 2, 2021. i) Provide the impact of the adjusting entry on the accounting equation at August 31, 2021, the company's year end. Be sure to include the account names, the dollar amounts and indicate a '+' or a. (2 marks) a Date Assets Liabilities + Shareholders' Equity Aug. 31 Provide the impact on the accounting equation for the entry the company will make on September 2, 2021, when they next pay employees. Be sure to include the account names, the dollar amounts and indicate a +' or a '--. (3 marks) Date Assets Liabilities + Shareholders' Equity Sept. 2 iii) Assume that BMW Corp. also had the following items requiring adjustment at year end. For each item determine whether the required adjusting entry at Dec. 31, 2020 will increase (1), decrease (D), or have no effect (NE) on each of the three categories of the accounting equation. An example has been provided for you. (2 marks) A D L NE + SHE D BMW Corp. purchased a one year insurance policy on July 1st for $6,000. On November 1, 2020, BMW Corp. received $600 from Rent-A- Car Inc. to wash all their rental cars for the following 3 months. BMW has not yet billed ABC Leasing $400 for cleaning their fleet of cars during the last week of December. BMW Corp. operates an automatic car wash business, Dirt Cleaners. The company's year-end is on August 31, 2021. Employees work Monday to Friday and are paid $200 each per day. There are 5 employees. Wages are deposited into the employee's bank accounts every Friday. August 31st falls on a Wednesday. Employees were last paid on August 26th, the previous Friday, for the work completed up until this date. Employees will receive their next payment on September 2, 2021. i) Provide the impact of the adjusting entry on the accounting equation at August 31, 2021, the company's year end. Be sure to include the account names, the dollar amounts and indicate a '+' or a. (2 marks) a Date Assets Liabilities + Shareholders' Equity Aug. 31 Provide the impact on the accounting equation for the entry the company will make on September 2, 2021, when they next pay employees. Be sure to include the account names, the dollar amounts and indicate a +' or a '--. (3 marks) Date Assets Liabilities + Shareholders' Equity Sept. 2 iii) Assume that BMW Corp. also had the following items requiring adjustment at year end. For each item determine whether the required adjusting entry at Dec. 31, 2020 will increase (1), decrease (D), or have no effect (NE) on each of the three categories of the accounting equation. An example has been provided for you. (2 marks) A D L NE + SHE D BMW Corp. purchased a one year insurance policy on July 1st for $6,000. On November 1, 2020, BMW Corp. received $600 from Rent-A- Car Inc. to wash all their rental cars for the following 3 months. BMW has not yet billed ABC Leasing $400 for cleaning their fleet of cars during the last week of December
