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Monica's Makeovers has the following unadjusted account balances in its general ledger at December 31, 2021 (its fiscal year-end). Cash Accounts receivable $18,300 4,800 Supplies
Monica's Makeovers has the following unadjusted account balances in its general ledger at December 31, 2021 (its fiscal year-end). Cash Accounts receivable $18,300 4,800 Supplies 3,500 Equipment 25,000 Accumulated depreciation - equipment $2,500 Accounts payable 18,800 Unearned service revenue 5,000 Interest payable Salary payable Note payable Retained earnings 10,000 12,055 Dividends declared 600 Service revenue 30,300 Advertising expense 2,500 Interest expense 675 Depreciation expense Office expense 330 Rent expense 9,600 13,350 Salary expense Supplies expense Additional information related to the year-end: 1. One-half of the unearned service revenue was earned as of the year-end. 2. Equipment is being depreciated at $2,500 per year. 3. Supplies on hand at December 31 total $500. 4. The note payable bears interest at 9% per year, with interest from October 1 to December 31 incurred but not yet paid or recorded. 5. Accrued but unpaid salary at year-end totals $1,100. Required: As you learned from studying "accrual accounting basics", each adjustment at period end affects one balance sheet account and one income statement account. Therefore, for each of the five info items listed, indicate the two accounts that require adjustment and by what amount, entering the balance sheet account adjustment first, then the income statement account adjustment. Enter answers in the table below. [NOTE: use the most appropriate accounts from those provided above and enter the names EXACTLY as they are listed. Do NOT use commas, dollar signs, other special characters when entering amounts. Any accounts understated should be put as a positive number adjustment, even if it is an expense (e.g., type "5000" to increase an expense by $5000). If an account is to be decreased, put a minus sign in front of the number. For example: for a $5,000 decrease, type "-5000" (without the quotations). Item Balance Sheet Account Adjustment Amount 1. 2. 3. 4. 5. Name Income Statement Account Name Adjustment Amount
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