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You must analyze the sets of facts presented below to determine their proper treatment based on the by GAAP and provide the entries, adjustments,
You must analyze the sets of facts presented below to determine their proper treatment based on the by GAAP and provide the entries, adjustments, postings, and other information as requested. Enter the effects of the adjusting entries on the GAAP balance sheet and income statement in the tables provided. Present any required supporting computations in the spaces provided. (4 points per adjustment 20 points) a. On July 31, 2020, Cardi B Furnishings Corp, agreed to lease space in its office building to Grissom Studios from August 1, 2022 through July 31, 2023 at a rate of $10,000 per month. Under the agreement, Cardi B Furnishings Corp. was entitled to receive rent payments at the end of every six months with the first payment due on February 1, 2023. On December 31, 2022, Cardi B Furnishings Corp. determined that it provided the space to Grissom Studies since August 1. Assets Balance Sheet Income Statement Liabilities Equity Revenue Expenses Net Income Statement of Cash Flows Cash Inflows (Outflows) Supporting Computation Required:
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