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The following information relates to adjusting entries for Rally Inc. on December 31. 1. December interest on a note payable, not due until January was
The following information relates to adjusting entries for Rally Inc. on December 31. 1. December interest on a note payable, not due until January was $125. 2. 75% of services were performed as of December 31 , related to an advance customer payment of $15,000 received on December 1. The payment was recorded as deferred revenue on December 1. The customer has a strong credit rating. 3. A physical count of supplies shows $1,250 of supplies available. However, the company has not adjusted its January 1 balance of supplies which shows $5,500 in the accounting records. 4. Depreciation on equipment of $2,500 has not been recorded for the current year. 5. A sales bonus of $4,200, due to the sales team based upon December sales, has not been recorded. If the entries had not been recorded, determine the impact on total revenues, total expenses, and cash
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