Part 1: Write the journal entry and answer the accounting equation question for each: 1) What is the journal entry a company records for receiving $2,700 cash in advance for services which will be performed and completed next month? Debit Credit Impact to the equation: Assets = Liabilities + Stockholders' equity 2) What is the journal entry a company records when purchasing $4,650 of Supplies with a promise to pay in the future (sometimes called "purchased on account")? Debit Credit Impact to the equation: Assets = Liabilities + Stockholders' equity Part 2: Identify on which financial statement (Income Statement, Balance Sheet, or Statement of Retained Earnings) the following accounts are found and note the normal balance for each: 3) Financial Stmt. Normal Nor Example: Balance Sheet Debit Balance a. Cash b. Dividends c. Goodwill d. Cost of Goods Sold e. Unearned Revenue f. Common Stock 4) Accrual-basis accounting means that transactions that change a company's financial statements are recorded in the periods in which the events occur a. even if cash was not exchanged b. only if cash is not exchanged c. only if cash is exchanged 5) Interest of $550 has accrued on a note payable. What is the necessary adjusting entry to record this interest? Debit Credit If this adjustment is not made, the following are overstated, understated, or not impacted: Assets: Revenue: Liabilities: Expense: Stockholders' Equity: . 6) Miller Inc. has $700 of supplies on hand, but their Supplies account shows a balance of $3,500. What is the necessary adjusting entry? Debit Credit If this adjustment is not made, the following are overstated, understated, or not impacted: Assets: Revenue: Liabilities: Expense: Stockholders' Equity: 7) The depreciation on Beardown Co.'s office equipment is $475 per month. What is the necessary adjusting entry to record monthly depreciation? Debit Credit If this adjustment is not made, the following are overstated, understated, or not impacted: Assets: Revenue: Liabilities: Expense: Stockholders' Equity