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[The following information applies to the questions displayed below.) Use the following transactions. a. Wages of $770 for the last three days of the fiscal
[The following information applies to the questions displayed below.) Use the following transactions. a. Wages of $770 for the last three days of the fiscal period have not been accrued. b. Interest of $90 on a bank loan has not been accrued. c. Interest on bonds payable has not been accrued for the current month. The company has outstanding $180,000 of 8.5% bonds d. The discount related to the bonds in part c has not been amortized for the current month. The current month amortization is $30. e. Product warranties were honored during the month; parts inventory items valued at $735 were sent to customers making claims, and cash refunds of $365 were also made. f. During the fiscal period, advance payments from customers totaling $1,300 were received and recorded as sales revenues. The items will not be delivered to the customers until the next fiscal period. Record the appropriate adjustment. equired: 1. Show the effect, if any, of each of the transactions/adjustments on the appropriate balance sheet category or on the income atement by selecting the amount and indicating whether it is an addition (+) or a subtraction (-) Transaction/ Adjustment Current Assets Current Liabilities -770 Long-Term Debt Net Income a. b -90 C. d. +30 e. +1,100 f. -1,300
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