Chapter Summary Assignment \#2 (Ch 3 \& 4) D2L quiz questions will be asked in class based on your completion of this preparation guide. Example in class question: What is the answer to Question 4) b.? You will not have time to complete this guide in class! You are required to handwrite your answers to this assignment. 1) What is the journal entry a company records for receiving $425 cash in advance for services which will be performed and completed next month? Impact to the equation: Assets = Liabilities + Stockholders' equity 2) What is the journal entry a company records when they purchase $550 worth of supplies on account (i.e., they won't pay the bill until a later date) Impact to the equation: Assets = Liabilities + Stockholders' equity 3) What is the journal entry a company records for issuing $12,000 worth of common stort? Impact to the equation: Assets = Liabilities + Stockholders' equity The depreciation on Macrosoft's office equipment is $525 per month. What is the necessary adjusting entry to record monthly depreciation? If this adjustment is NOT made, the following are overstated, understated, or not impacted: Assets: Liabilities: Stockholders' Equity: Revenue: Expense: 6) What are the 4 types of adjusting entries (Hint: two are deferrals, two are accruals)? 1. 2. 3. 4. 7) Zamazon Inc. started the month with $6,500 in unearned revenue. During the month, Zamazon completed $1,100 of services related to the unearned revenue. What is the necessarv adiustina entrv? If this adjustment is NOT made, the following are overstated, understated, or not impacted: Assets: Liabilities: Stockholders' Equity: Revenue: Expense: 8) Boogle Co. prepaid $1,800 for one year's worth of insurance on January 1st ( $150/ month). What is the necessary adjusting entry to record $150 worth of prepaid insurance which expired at the end of January. If this adjustment is NOT made, the following are overstated, understated, or not impacted: Assets: Liabilities: Stockholders' Equity: Revenue: Expense: 4) Identify on which financial statement (Income Statement, Balance Sheet, or Statement of Retained Earnings) the following accounts are found and note the normal balance for each: 5) Accrual-basis accounting means that transactions that change a company's financial statements are recorded in the periods in which the events occur: a. even if cash was not exchanged b. only if cash is not exchanged c. only if cash is exchanged