OpenStax Principles of Accounting, Volume 1: Financial Accounting Chapter 4: The Adjustment Process equation, Assets = Liabilities + Equity (assume normal balances). A. Unearned Fees adjusted from $7,000 to $5,000 Recorded depreciation expense of $12,000 B. C. Prepaid Insurance adjusted from $18,500 to $6,300 D. Supplies account balance $500, actual count $220 PA6. LO 4.2 What two accounts are affected by each of these adjustments? billed customers for services provided A. B. adjusted prepaid insurance to correct C. recorded depreciation expense Impact 1 D. recorded unpaid utility bill E. adjusted supplies inventory to correct Solution PA7. LO 4.3 Using the following information: A. make the December 31 adjusting journal entry for depreciation B. determine the net book value (NBV) of the asset on December 31 Cost of asset, $250,000 I Impact 2

OpenStax Principles of Accounting, Wlume 1: Financial Accounting Chapter 4: The Adjusiment Process PA6. LO 4.2 What two accounts are affected by each of these adjustments? A. billed customers for services provided B. adjusted prepaid insurance to correct C. recorded depreciation expense D. recorded unpaid utility bill E. adjusted supplies inventory to correct Solution PA7. LO 4.3 Using the following information: A. make the December 31 adjusting joumal entry for depreciation B. determine the net book value (NBV) of the asset on December 31 - Cost of asset. $250.000