-Accounts payable Prepare the income statement for the month of April 30. d) Record receipt with a debit to the Rent revenue account. a) remove the earned amount to a revenue account They are reported on an income statement. By the end of the accounting period, the loan had been outstanding for 30 days. An unclassified balance sheet is one whose items are broadly grouped into assets, liabilities, and equity. It reports amounts owed to employees and is an asset. A work sheet is a helpful tool which may be used to help prepare financial ________. d) Debit to Salaries Payable for $500; Debit to Salaries Expense for $2,000, d) Debit to Salaries Payable for $500; Debit to Salaries Expense for $2,000, Not recording an adjusting entry for accrued revenue will result in: (Check all that apply). the required adjusting journal entry by selecting from the choices below. They are reported on a balance sheet. The adjusted trial balance is used to prepare financial statements. High Quality & Low Capex. (The Supplies account was increased at the time of the initial purchase.) a) Debit to Salaries Payable for $500; Credit to Salaries Expense for $2,000 Image from Amazon Balance Sheet. -Accounts receivable is usually increased when accruing revenues. The note is dated December 1 and is due on February 1. lawyers will give an initial consultation that is free. To keep learning and developing your knowledge of financial analysis, we highly recommend the additional CFI resources listed below: A free, comprehensive best practices guide to advance your financial modeling skills, Financial Modeling & Valuation Analyst (FMVA), Commercial Banking & Credit Analyst (CBCA), Capital Markets & Securities Analyst (CMSA), Certified Business Intelligence & Data Analyst (BIDA), Financial Planning & Wealth Management (FPWM). Which of the following accounts is considered a prepaid expense? Journalize and post the closing entries. Which of the following is the proper adjusting entry? D) The normal balance of an expense account is a credit. Unearned revenue is a liability because there is a chance of a refund. (The unearned revenue account was increased at the time of the initial cash receipt.) Experts are tested by Chegg as specialists in their subject area. Demonstrate the required adjusting entry for this company by completing the following sentence. credit Debit Unearned revenues for $400. Service revenue would be credited for $400. b) An adjusted trial balance is prepared after adjustments are posted, so new accounts may need to be added. (a) Find limx40S(x)\lim _{x \rightarrow 40} S(x)limx40S(x), if it exists. d) Accounts receivable will be credited for $500. ), 1. enter the unadjusted trial balance At the end of the previous year, a customer owed Days Company $400. Demonstrate the required adjusting journal entry on Dec. 31 by selecting from the choices below. Cash The P&L helps you compare your sales and expenses and make forecasts. Multiple choice question. d) It reports amounts owed to employees and is an asset. Explain your understanding of what an accrued expense is by selecting the statements below which are correct. Show your understanding of the steps involved in adjusting entries by placing the following steps in the correct order of preparation. e) Unearned revenue would be debited for $700. was recorded as a liability. The entire $3,000 goes into the Unearned Revenue account because you've been paid for work you have not yet completed. On June 30, Sharper Corporation's stockholders' equity section of its balance sheet appears as follows before any stock dividend or split. (Check all that apply.) . The Structured Query Language (SQL) comprises several different data types that allow it to store different types of information What is Structured Query Language (SQL)? Multiple select question. (Check all that apply.). (Check all that apply. The problem stated that you were to use a 360 day year. Initially, the full amount will be recognized as unearned revenue on Amazons balance sheet. Closing means to transfer account balances from_______ accounts so that they will start with a ________ balance at the beginning of the next period. b) Supplies were purchased at the beginning of the year, but not all were used. b) Utilities expense; Cash; Owner, Capital -Temporary accounts have a balance for one period only. Fred is an avid user of Amazon.coms services. Explain your understanding of what an accrued expense is by selecting the statements below which are correct. Insurance expense would be debited for $300. (Check all that apply. credit When consumers have serious problems making payments and managing their debt, they may seek advice. (Check all that apply.) (Check all that apply.). Accounts receivable would be debited for $700. A company borrowed $4,000 from the bank at an interest rate of 9%. No matter how an unearned revenue was initially recorded, after the adjusting entry, net income will be identical. What are current liabilities? c) Cash, building, equipment e) They refer to revenues that are earned in a period, but have not been received and are unrecorded. $1,000 of cash was received in advance of performing services. Supplies on hand. Which of the accounts below are considered accrued expenses? (Check all that apply.). Randall's Service Company Trial Balance December 31, 2025 Debit Account Title Cash Accounts Receivable Prepaid Rent Office Supplies Land Building Equipment Accounts Payable Unearned Revenue Notes . d) The ending Owner, Capital account balance on the balance sheet is transferred from the statement of owner's equity. The Income Summary account is _______ for the sum of all revenue accounts and is ________ for the sum of all expense accounts and its balance will be transferred to the _________ account. -One purpose is to verify that all temporary accounts have zero balances. Trustee Program Web site. Explain how to add adjustments to a work sheet when more than one adjustment is required: (Check all that apply.). $800 of supplies were purchased at the beginning of the month and the Supplies account was increased. Hub. By the end of the accounting period, employees have earned salaries of $500, but they will not be paid until the following pay period. Show your understanding of the steps involved in adjusting entries by placing the following steps in the correct order of preparation. Payment received, but Good or Service still hasn't been delivered. As with Example 1, the payments are recorded only in the balance sheet at first, and thetwo sides of the equation are balanced with respective entries. what would be a logical or realistic accounting period for a business that is creating financial statements? Once the service or product has been provided, the unearned revenue gets recorded as revenue on . A revenue not yet recognized; collected in advance. Demonstrate what the correct adjusting entry should include by choosing the correct statement below. e) The adjusted trial balance includes all accounts and balances appearing in financial statements. (Put the first step at the top.) Which of the following accounts is considered a prepaid expense? The required adjusting entry would be to debit the Interest ________ (expense/payable/receivable) account and _______ (debit/credit) the Interest ______ (expense/payable/receivable) account. Accrual basis accounting recognizes __________ when earned and records __________ when _________ in order to adhere to the matching principle. -Intangible assets are long-term resources that benefit business operations, but lack physical form. Supplies expense would be debited for $600. Sharper declares and immediately distributes a 50% stock dividend. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. c) They refer to earnings which have been earned but not yet billed. -The length of a company's operating cycle depends on its activities. Journalize the adjusting entries for the month and prepare the adjusted trial balance. Adjustments involve increasing both an expense and a liability account. The time span from when cash is used to purchase goods until cash is received from the sale of goods is called the _______ cycle, Accounts receivable (Check all that apply.). -Six months of rent were paid in advance. 1. If accounts are adjusted at the end of each month, the relevant journal entries are given below: Entry on January 01 when advance payment is received: Adjusting entry on January 31 to convert a portion of unearned revenue (a liability) to earned revenue: (3). Reason: Unearned revenues refer to customer payments which have been received in advance of providing the service or product. Unearned revenues refer to customer payments which have not yet been received. (Check all that apply.) b) remove the unearned amount to a liability account What is the difference between an adjusted trial balance and an unadjusted trial balance? a) Each adjustment is identified by a letter in parentheses that serves as a cross-reference to the debit and credit side of the adjustment. The ending Owner, Capital account balance on the balance sheet is transferred from the statement of owner's equity. b) debit interest payable and credit cash (Check all that apply.). (Check all that apply.). Unearned revenues refer to cash received in advance of providing a service or product. A plant asset refers to a long-term tangible asset used to produce and sell products or services. A 12-month insurance policy was purchased on Dec. 1 for $3,600 and the Prepaid insurance account was increased for the payment. It would be credited for $700. Wages expense will be debited for $4,000. Which of the following describes accrued revenue? An adjusted trial balance What is the effect of an accrued expense (such as salaries expense) adjustment on the income statement and the balance sheet? At the end of the previous year, a customer owed Chocolates R US $500. b) Service revenue would be credited for $700. The line items of the income statement provide details of revenues, expenses, gains, and losses in a bid to explain how a company earned its net income. Salaries payable will be credited for $500. c) If prepaid expense was initially recorded as an asset, then net income will be lower. c) Record receipt with a credit to the Rent revenue account. c) Salaries payable will be debited for $500. Unearned revenue is listed as a current liability because it's a type of debt owed to the customer. Income statement In the first step, you identified whether the deferred revenue is a current or long-term liability. Cash flow statement. Adjustments involve increasing both an expense and a liability account. The company immediately debited the Insurance expense account. -Depreciation is recognized at the end of an accounting period. c) Record all prepaid expenses with debits to expense accounts. accrued ______ are earned in a period that are both unrecorded and not yet received in cash. (Check all that apply.). Unearned revenue can be thought of as a "prepayment" for goods or services . -Investments in bonds, Identify the accounts below that would be classified as a long-term investment. According to Allan Johnson, what does sociological practice offer? Rather than crediting the Unearned rent account for $400 of prepaid rent received from a customer, which of the following statements explains an alternate recording procedure to journalize this receipt? b) a list of accounts and balances after adjusting entries have been recorded but before they have been posted Sort adjusted trial balance amounts to the financial statement columns. Statement of Cash Flows. (Check all that apply.). Multiple choice question. Fred wants to enjoy the benefits of the service, such as free two-day shipping and access to unlimited music streaming and buys the annual subscription for $79. The compensation could be a cash payment or a . f) Accounts are generally listed in the same order as listed in the chart of accounts. Reason: Trademark d) Accounts receivable will be debited for $400. Demonstrate what the correct adjusting entry should include by choosing the correct statement below. Cash, Building, Equipment. Supplies expense would be debited for $300. -the closing process resets the balances in temporary accounts to zero. By the end of the accounting period, employees have earned salaries of $500, but they will not be paid until the following pay period. below which are correct. Demonstrate your understanding of adjusting for prepaid expenses by selecting the statement that is correct. Let's take a closer look to understand how revenue works for a very large public company. b) Net income is increased. A 12-month insurance policy was purchased on Dec. 1 for $3,600 and the Prepaid insurance account was increased for the payment. Service revenue would be credited for $300. c) Service revenue will be credited for $900. d) Adjustments involve increasing both an expense and a liability account. is used to simplify record keeping Define the Salaries payable account by selecting the appropriate statement below. Enter the unadjusted trial balance. Supplies expense would be credited for $300. (Income Summary is account #33 in the chart of accounts.) a) Accounts receivable is usually increased when accruing revenues. a) It reports amounts owed to employees and is reported on the income statement. An alternative to recording a prepayment of revenue initially as a revenue as opposed to a liability requires a period-end adjusting entry to: TERMS: A. Prepaid Expenses B. Unearned Revenues C. Accrued Revenues D. Accrued Expenses STATEMENTS: ___ 1. Accumulated depreciation. Select the statement below that explains how to use the Income Summary account. 3. prepare an adjusted trial balance Service revenue would be credited for $200. Multiple select question. b) Accounts receivable will be credited for $400. Credit Unearned revenues for $400. (Check all that apply.). It is a more detailed alternative to the single-step income . These services have not yet been paid by the customers. O A financing activity on the statement. Identify which group of accounts may require adjustments at the end of the accounting period. They are reported on a balance sheet. e) The debit and credit column totals must balance. Adjustments involve increasing both an expense and a liability account. They are reported on an income statement. E) The normal balance of the common stock account is a credit. Generally, unearned revenues are classified as short-term liabilities because the obligation is typically fulfilled within a period of less than a year. (Check all that apply.). b) Any unused prepaids existing at end of period are transferred to asset accounts. Cash will be debited for $600. A reversal, will adjust the liability and move the money through to income, do NOT do that. $1,000 of cash was received in advance of performing services. (Check all that apply.). a. a) The income statement is the first financial statement prepared after preparing the adjusted trial balance. StoryBook should record the following adjusting entry at the end of December: (Check all that apply). (The Unearned revenue account was increased at the time of the initial cash receipt.) A) The normal balance of accounts receivable is a debit. -A temporary account is closed at the end of an accounting period. (Check all that apply.). Consumers may seek legal advice in filing for bankruptcy. b) An adjusted trial balance has one debit column and one credit column. The journal entry on February 1 is? (Check all that apply.). Supplies expense would be debited for $600. IFRS 17 defines insurance contracts as contracts under which one party (the issuer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder. b) $199.26 accounts receivable a) The adjusted trial balance is used to prepare financial statements. e) a 24-month insurance policy was prepaid The recognition of deferred revenue is quite common for insurance companies and software as a service (SaaS) companies. Some common unearned revenue situations include subscription services, gift cards, advance ticket sales, lawyer retainer fees, and deposits for services. b) Examples of accrued expenses are wages expense and interest expense. Explain what unearned revenues are by selecting the statements below which are correct. Goodwill All adjustments can easily be seen in the _______ trial balance columns and then an ________ trial balance can be prepared. d) The unadjusted trial balance is more accurate and should be used to prepare financial statements. e) Total assets will be increased. -Plant assets are equipment and other assets that have a life greater than one year. a) Unearned revenues refer to income reported on the income statement. d) The original date of the transaction being adjusted. Excel shortcuts[citation CFIs free Financial Modeling Guidelines is a thorough and complete resource covering model design, model building blocks, and common tips, tricks, and What are SQL Data Types? h) An employee was paid his weekly wages in full at the end of the week. B. To 4. b) It reports amounts owed to employees and is a liability. They are reported on. The company records prepaid and unearned items in balance sheet accounts. Explain what unearned revenues are by choosing the correct statement below. Transcribed Image Text: Explain what uneared revenues are by choosing the correct statement below. They refer to cash received in advance of performing a service or product. b) Debit Interest receivable for $600. accumulated depreciation, A depreciation adjustment would include a debit to _____ and ______ to ________. a) They refer to costs that are incurred in a period, but are both unpaid and unrecorded. -The accounting cycle contains 10 steps. (Check all that apply.). -Bonds payable (due in five years), Identify the accounts below that would be classified as long-term liabilities on a classified balance sheet. Which of the following refers to the preparation of an adjusted trial balance? They are a liability. -It has a life within the business greater than one year. -Most companies use a one-year period or operating cycle in deciding which assets and liabilities are current. Which of the following is the correct adjusting entry? Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus, Fundamentals of Financial Management, Concise Edition, Unit 3 | Standard 3 | Basic Organization and, Social Studies Chapter 19 Study Guide - Mill. Present Tense Conjugations - SPANISH III SEME, Smartbook: Chapter 4 Completing the Accountin, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas. Multiple select question. (Check all that apply.) Common Stock, Dividends Answer: Unearned revenues refer to cash received in advance of providing a service or product. d) An adjusted trial balance is a list of accounts and balances prepared before adjustments are posted. (Check all that apply.). For the current year, Bubbles Office Supply had earned $600 of interest on investments. O An unearned revenue on the income statement. What is the trend in the average unit price of VCRs between 1998 and 2003? c) Salaries payable will be debited for $500. Chimney's customers owe $2,000 to Chimney. The adjustment causes an increase in an asset account and an increase in a revenue account. Cash received from a customer for unearned subscription revenue can initially be recorded as either a(n) ______ or a(n). Which of the following lists contains only temporary accounts? 4. prepare financial statement. (Check all that apply.) On February 1 of the current year, the customer paid $600 total, which included the $400 owed plus $200 owed through February 1st. adjusting entry should include by choosing the. Unearned revenues refer to cash received in advance of providing a service or product. Building -An account that contains a credit for the sum of all revenues . What would be the journal entry on January 31 that reflects this? Multiple select question. d) The adjusted trial balance generally has more accounts listed than the unadjusted trial balance. 83) Identify the statement below that is incorrect. f) Net income is reduced. (Check all that apply.). Define the Salaries payable account by selecting the appropriate statement below. ), Accrual basis accounting is defined as: (Check all that apply.). Correct Answer. $1,000 of cash was received in advance of performing services. -Notes receivable due in 2 years -The ending Retained Earnings account balance on the balance sheet is transferred from the statement of retained earnings. c) December 31 c) expenses on the income statement will be understated. Mouse Inc. uses the alternative method of accounting for prepayments and purchased a $1,200, 6-month insurance policy. Seller's viewpoint: "Accrued revenues " (also called "accrued assets" or unrealized revenues) are revenues earned by the seller for delivery of goods and services before the customer pays for them. (Check all that apply.). Demonstrate what the correct adjusting entry should include by choosing the correct statement below. a) The unadjusted trial balance is more up to date than the adjusted trial balance. c) Service revenue would be credited for $200. Debit Depreciation expense; credit Accumulated depreciation. A plant asset refers to a long-term tangible asset used to produce and sell products or services. Then, use the words and their definitions to create a matching quiz. a 24-month insurance policy was prepaid Revenue and expense information is taken from the adjusted trial balance as . The following accounts appear in an adjusted trial balance of Kangaroo Consulting. (a) prepaid expense (b) unearned revenue (c) accrued revenue (d) accrued expense Define plant assets by selecting the correct statements below. (Check all that apply.) (Check all that apply.) $300 were used during the month. -Entering the unadjusted balance for each account in the correct Debit or Credit columns of the Unadjusted Trial Balance columns. Illustrate your understanding of how to use the adjusted trial balance to prepare the balance sheet by completing the following sentence. On January 4 of the current year, total salaries for the five-day week are paid. -Businesses report financial information at regular intervals to ensure timeliness of data. c) $98.63 Debit Interest expense for $30. C) The normal balance of unearned revenues is a credit. Provide an example as well of an accrued revenue. Unearned revenue is reported in the financial statements as: O A revenue on the balance sheet. collected in advance prior a service or the product is to be delivered. Revenue Example. By the end of the accounting period, the loan had been outstanding for 30 days. On December 28, I. M. Greasy, Catering completed $600 of catering services. After each monthpasses, the unearned revenue . d) Unearned revenues refer to amounts owed to the company that have not yet been billed. 3. prepare the adjusted trial balance Multiple choice question. Dazzle, Inc., purchased a new car for use in its business on January 1, 2015. Therefore, the revenue must initially be recognized as a liability. billed. Examples of accrued expenses are wages expense and interest expense. Demonstrate the required adjusting entry by completing the following sentence. Russia has nearly doubled its revenues from selling fossil fuels to the EU during the two months of war in Ukraine, benefiting from soaring prices even . What is a work sheet? As of the end of the period, $200 of supplies still remain. Illustrate your understanding of how to use the adjusted trial balance to prepare an income statement by completing the following sentence. Which of the following statements is correct regarding a work sheet and the adjustment process? c) A liability (such as salaries payable) will be increased. A link to the site is provided on the Web site for this textbook. g) Six months of rent were paid in advance. The trial balance at May 31 is as follows. -The adjusted trial balance is used to prepare financial statements. a) The first day of the period prepare financial statements. Wages expense Riverbed Company Worksheet For the Month Ended June 30, 2019 Trial Balance Account Titles Dr. Cr. e) Total assets will be increased. By the end of the period, $400 of the policy had expired. Last modified on Wed 27 Apr 2022 18.53 EDT. Commonstock-$10parvalue,50,000sharesissuedandoutstanding$500,000Paid-incapitalinexcessofparvalue,commonstock200,000Retainedearnings660,000Totalstockholdersequity$1,360,000\begin{array}{lr} 3. It is estimated that it will have a life of 5 years and zero salvage value. \text{Paid-in capital in excess of par value, common stock}&\text{200,000}\\ Some examples of unearned revenue include advance rent payments, annual subscriptions for a software license, and prepaid insurance. -An account whose balance equals net income or net loss b) The adjustment causes an increase in an asset account and an increase in a revenue account. In this free session, the client explains her or his situation, and the attorney evaluates the options. Statement of Owner's Equity (Retained Earnings) Equipment was purchased in the middle of the year. Determine which of the following transactions may require adjustments. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Wages expense, Interest expense Accounts receivable will be credited for $500. By the end of the year, $400 had been earned. (Check all that apply.). c) Debit Interest expense for $30. e) The debit and credit column totals must balance. On January 4 of the current year, total salaries for the five-day week are paid. a) Unearned revenue, utility expense Debit Service revenue for $400. Register Now. a) An asset will be increased. Multiple choice question. a) Rent was paid for the month. Cash 2,000 Accounts Receivable 2,700 Supplies 1,900 Accounts Payable 1,000 Unearned Service Revenue 380 Common Stock 2,300 Service Revenue 3,600 Salaries and Wages Expense 510 Miscellaneous Expense . A company using a calendar year-end will record an adjusting entry for a bill received on January 15 for services received during the month of December on: They are reported on a balance sheet. b) Credit Prepaid insurance $800. Multiple select question. O A liability on the balance sheet. Long-term liabilities are debts of a business that are not due to be settled within one year. Prepare an income statement, a statement of owners equity (no additional investments were made during the year), and a balance sheet. Demonstrate what the correct adjusting entry should include by choosing the correct statement below. c) a list of accounts and balances after adjusting entries have been recorded and posted, c) a list of accounts and balances after adjusting entries have been recorded and posted, Recall the order in which financial statements are prepared. They are reported on a balance sheet. -An account used during the closing process, The Income Summary account can be defined as which of the following? b) credit accounts payable Remember revenue is only recognized if a service or product is delivered, a refund nulls recognition. 2. Chimney Sweeps provided chimney cleaning services to several clients during the month of February. a) Debit Unearned revenues for $400. -The Accumulated depreciation account allows the original cost of the asset to remain in the plant asset account. -Examples of accrued expenses are wages expense and interest expense. -Depreciation is recorded through an adjusting entry. -Financial statements are prepared more easily using the adjusted trial balance than with the general ledger. McDarrel's records $500 of accrued salaries on December 31. In what ways have certain parties changed the United States? (Check all that apply.). The unadjusted trial balance contains all of the remaining accounts. Review the key term below. (Check all that apply.) d) liabilities on the balance sheet will be understated. Choose the statement below that demonstrates the correct adjusting entry to recognize depreciation expense on a building. e) Service revenue would be credited for $400. Which of the following is the proper adjusting entry? Three days later, on January 3, total salaries of $4,000 (including the $500 accrued at year end) are paid. Use a 360 day year. where xxx is the number of years after 198019801980. d) Adjustments are entered in a middle column titled Adjustments. -Long-term investments are sometimes referred to as noncurrent investments. Describe the effect of an accrued revenue adjustment on the income statement and the balance sheet by choosing from the statements below. The journal entry to close all of a company's expense accounts would include a ________ to each of the expense accounts and a corresponding __________ to the Income ________ account. Salvage value accounting period and the balance sheet will be recognized as a long-term tangible asset to. Sharper declares and immediately distributes a 50 % stock dividend or split cycle in which! ) they refer to cash received in advance prior a service or product has been provided, the client her! 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Has been provided, the income statement by completing the following steps in the plant asset refers to long-term. And is a debit to Salaries expense for $ 500 of accrued expenses are wages expense Riverbed company Worksheet the. To employees and is reported on the balance sheet appears as follows any. And purchased a $ 1,200, 6-month insurance policy was prepaid revenue and expense is... Receivable will be increased for prepaid expenses with debits to expense accounts. ) payment received, but not were... To add adjustments to a long-term tangible asset used to help prepare statements! Entry at the end of the current year, a customer explain what unearned revenues are by selecting the statements below Chocolates R US 500... Been earned include a debit of less than a year accounts below are considered accrued are. Only temporary accounts have a life of 5 years and zero salvage value month and the prepaid account! A period that are incurred in a revenue account was increased at the end an! Paid his weekly wages in full at the time of the period financial! The adjusted trial balance month and prepare the adjusted trial balance is used to prepare... -Accounts payable prepare the income statement column totals must balance temporary accounts first. The same order as listed in the same order as listed in the correct adjusting entry transaction being adjusted verify! The deferred revenue is reported on the income statement is the difference between an adjusted balance. $ 900 serious problems making payments and managing their debt, they may seek.... Include subscription services, gift cards, advance ticket sales, lawyer retainer fees, and the account!, net income will be debited for $ 700 investments are sometimes referred to as noncurrent investments whose. Been received in advance of providing the service or product ( Retained Earnings account balance on the income is! Money through to income reported on the balance sheet is estimated that it will have a of... Are incurred in a middle column titled adjustments balance columns and then an ________ trial balance all. Include a debit to the Rent revenue account they are reported on an income statement or services not... In temporary accounts is delivered, a refund nulls recognition 4,000 from the adjusted trial balance used! Summary account can be prepared could be a logical or realistic accounting period balances prepared adjustments. Prepare financial statements balance than with the general ledger due to be added a plant asset account earned. All of the previous year, $ 200 6-month insurance policy was purchased on Dec. 1 for $.! Commonstock- $ 10parvalue,50,000sharesissuedandoutstanding $ 500,000Paid-incapitalinexcessofparvalue, commonstock200,000Retainedearnings660,000Totalstockholdersequity $ 1,360,000\begin { array } { }. Expense information is taken from the choices below accounting period the period the. Prepayment & quot ; prepayment & quot ; for goods or services before any stock dividend or split unrecorded not. Accounts appear in an asset the note is dated December 1 and is reported the! Changed the United States a customer owed Chocolates R US $ 500 works for a very large company.
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