M3-16. Assessing Financial Statement Effecets of Transaction and Adjustments. Schrand Services offers janitorial services on both a contract basis and an hourly basis. On January 1, Schrand collected S26,100 cash in advance on a six-month contract for work to be performed evenly during the next six months. a. Prepare the entry on January 1 to reflect the receipt of $26,100 cash for con work; use the financial statement effects template. tract b. Adjust the appropriate account on January 31 for the contract work done during January, use the financial statement effects template. c. At January 31, a total of 30 hours of hourly rate janitor work was performed but unbilled. The billing rate is $19 per hour. Prepare the accounting adjustment needed on January 31, using the financial statement effects template. (The firm uses the account Fees Receivable to reflect revenue earned but not yet billed.) M4-20. Compute and Interpret Disaggregation of Dupont Analysis Ratios. Selected balance sheet and income statement information for Macy's, Inc., a retailer, follows. 20132012 2013 2013 2012 Stockholders" Stockholders" Company (Smillion) Ticker Sales Net Income Assets Assets | Macy's | | S27,686| $1.335 20,991 l s22,095-6,051 S5,933 M a. Compute Macy's 2013 return on equity (ROE) b. Disaggregate ROE into profit margin, asset turnover, and financial leverage. Confim that ROE-PMxATxFL