Greensboro Properties Inc. owns a building in which it leases office space to small businesses and professionals. During the year, Greensboro Properties engaged in the following transactions: a. On March 1, Greensboro Properties paid \$10,320 in advance to Patterson Insurance Company for 1 year of insurance beginning March 1. The full amount of the prepayment was debited to prepaid insurance. b. On May 1, Greensboro Properties received $30,000 for 1 year's rent from Angela Cottrell, a lawyer and new tenant. Greensboro Properties credited unearned rent revenue for the full amount collected from Cottrell. c. On July 31, Greensboro Properties received \$252,000 for 6 months' rent on an office building that is occupied by Newnan and Calhoun, a regional accounting firm. The rental period begins on August 1. The full amount received was credited to unearned rent revenue. d. On November 1, Greensboro Properties paid \$4,200 to Pinkerton Security for 3 months' security services beginning on that date. The entire amount was debited to prepaid security services. 1 Adjusting Entries 2 3 4 5 6 7 8 9 3. Conceptual Connection: What would be the total effect on the income statement and balance sheet if these entries were not recordec a. If this entry was not made, expenses would and assets would b. If this entry was not made, revenues would and liabilities would c. If this entry was not made, revenues would and liabilities would d. If this entry was not made, expenses would and assets would The cumulative effect on the income statement and balance sheet would be: - That revenues would be by - That expenses would be by - That net income would be by - That assets would be by - That liabilities would be by - That retained earnings would be by