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Examine each of the following fact scenarios, then prepare initial and end-of-year adjusting entries (when needed) assuming (a) use of a balance sheet approach versus

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Examine each of the following fact scenarios, then prepare initial and end-of-year adjusting entries (when needed) assuming (a) use of a "balance sheet" approach versus (b) use of an "income statement" approach. You may assume a calendar year end for each scenario. Use T-accounts to show how the same financial statement results occur under either approach. The worksheet on the website includes an illustrative solution for the first scenario. Scenario 1 A $1,500, one-year insurance policy was purchased on June 1, 20X1. Scenario 2 Unearned revenue of $20,000 was collected on August 1,201, and 40% of this amount was earned by the end of the year. Scenario 3 On December 1,201,$3,000 was prepaid for space in a trade-show booth. The trade show is in February of 202. Scenario 4 A $1,000 customer deposit for future services was received on April 1, 20X1. On June 20,201 the customer canceled the agreement and received a full refund. Examine each of the following fact scenarios, then prepare initial and end-of-year adjusting entries (when needed) assuming (a) use of a "balance sheet" approach versus (b) use of an "income statement" approach. You may assume a calendar year end for each scenario. Use T-accounts to show how the same financial statement results occur under either approach. The worksheet on the website includes an illustrative solution for the first scenario. Scenario 1 A $1,500, one-year insurance policy was purchased on June 1, 20X1. Scenario 2 Unearned revenue of $20,000 was collected on August 1,201, and 40% of this amount was earned by the end of the year. Scenario 3 On December 1,201,$3,000 was prepaid for space in a trade-show booth. The trade show is in February of 202. Scenario 4 A $1,000 customer deposit for future services was received on April 1, 20X1. On June 20,201 the customer canceled the agreement and received a full refund

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