QUESTION 5

BeStill Inc., adjusts and closes its books at the end of each month. On November 30, adjusting entries are prepared to record:

a. Rent expense accrued during November

Indicate the effect of each adjusting entry on the following by writing I (for increase), D (for decrease), and NE (for no effect) - do not write the words Increase, decrease, no effect, instead write I or D or NE:

Revenues

Expenses

Net Income

Assets

Cashflow

QUESTION 6

BeStillInc., adjusts and closes its books at the end of each month. On November 30, adjusting entries are prepared to record:

b. The firm had purchased insurance coverage for the period January 1 to December 31 on January 1.

Indicate the effect of each adjusting entry on the following by writing I (for increase), D (for decrease), and NE (for no effect):

Revenues

Expenses

Net Income

Assets

Cashflow