The following is the selected balances in the financial statements of Sherry Company. Adjustment Adjusted Bal Unadjusted Bal 120,000 80,000 40,000 100,000 30,000 70,000 Revenues Expenses Net Income Assets Total Liabilities SE Equity Net Cash Flows from Operating Activities Net Cash Flows from Investing Activities Net Cash Flows from Financing Activities 15,000 -3,000 5,000 On October 1, 2020, Rose Company borrowed $20,000 from bank by signing a 6%, 8-month note. The principal and interest on the loan will be paid at the maturity of the note on June 1, 2021. What would be the balances for the above items after June 1, 2021 transaction when Rose honors the obligations of the note? Example of Answer: Revenues = 2000 Expenses = 1800 Net Income = 200 so on (No space, comma, decimal point, or $ sign) Show negative amount with a minus Example: Net Cash Flows from Operating Activities = -3000 Revenues = A Expenses = AJ Net Income = Total Assets = A Total Liabilities = A Total SE = A Net Cash Flows from Operating Activities = AJ Net Cash Flows from Investing Activities = A/ Net Cash Flows Financing Activities = A/ The following is the selected balances in the financial statements of Sherry Company. Adjustment Adjusted Bal Unadjusted Bal 120,000 80,000 40,000 100,000 30,000 70,000 Revenues Expenses Net Income Assets Total Liabilities SE Equity Net Cash Flows from Operating Activities Net Cash Flows from Investing Activities Net Cash Flows from Financing Activities 15,000 -3,000 5,000 On October 1, 2020, Rose Company borrowed $50,000 from bank by signing a 6%, 8-month note. The principal and interest on the loan will be paid at the maturity of the note on June 1, 2021. What would be the balances for the above items after the adjusting journal entry on December 31, 2020 the end of accounting period? Example of Answer: Revenues = 2000 Expenses = 1800 Net Income = 200 so on (No space, comma, decimal point, or $ sign) Show negative amount with a minus Example: Net Cash Flows from Operating Activities = -3000 Revenues = A/ Expenses = AJ Net Income = AJ Total Assets = A/ Total Liabilities = A/ Total SE = A A/ Net Cash Flows from Operating Activities = Net Cash Flows from Investing Activities = A/ Net Cash Flows Financing Activities = A/ Alberto Company maintains its records on the cash basis. You have been engaged to convert its cash basis income statement to the accrual basis. The cash basis income statement, along with additional information, follows: Income Statement (Cash Basis) For the Year Ended December 31, 2020 Cash receipts from $450,000 customers Cash payments: Salaries and wages $170,000 Income taxes 65,000 Insurance 40,000 Interest 25,000 300,000 Net income $150,000 I 1 CL D CLICILI information: 2019 2020 $50,000 $30,000 10,000 20,000 19,000 Accounts receivable Salaries and wages payable Income taxes payable Prepaid insurance Accumulated depreciation Interest payable 24,000 8,000 4,000 95,000 75,000 3,000 9,000 No plant assets were sold during 2020. Using the above information, compute net income on an accrual basis of accounting for 2020. Net Income = A/ No plant assets were sold during 2020. Using the above information, compute net income on an accrual basis of accounting for 2020. Net Income = A
