4a. Depreciation on the building for the year is $6,200.b. Prepaid Insurance had a $3,200 debit balance at December 31 before adjusting for the costs of any expired coverage. A reviewshows that $1,200 of unexpired insurance coverage remains at year-end.c. Received $6,600 cash in advance from a client for services not yet performed. As of December 31, one-third of the work had beenperformed.d. As of December 31, salaries expense of $2,400 has been incurred but not yet paid.As of December 31, the company has earned, but not yet recorded, $520 of interest revenue. The interest revenue will be receivedin cash next year.For each of the separate cases, determine the financial statement impact of each required year-end adjusting entry. Fill in the table byindicating the amount and direction ((+) increase or (-) decrease) of the effect.a.b.C.d.e.Net IncomeTotal AssetsTotal LiabilitiesTotal Equity

An adjusting journal entry is a type of accounting entry made at the end of an accounting period to…

a. Depreciation on the building for the year is $6,200. b. Prepaid Insurance had a $3,200 debit balance at December 31 before adjusting for the costs of any expired coverage. A review shows that $1,200 of unexpired insurance coverage remains at year-end. c. Received $6,600 cash in advance from a client for services not yet performed. As of December 31, one-third of the work had been performed. d. As of December 31, salaries expense of $2,400 has been incurred but not yet paid. e. As of December 31, the company has earned, but not yet recorded, $520 of interest revenue. The interest revenue will be received in cash next year. For each of the separate cases, determine the financial statement impact of each required year-end adjusting entry. Fill in the table by indicating the amount and direction ((+) increase or (-) decrease) of the effect. CANON C. d. e. Net Income Total Assets Total Liabilities Total Equity

a. Depreciation on the building for the year is $6,200. b. Prepaid Insurance had a $3,200 debit balance at December 31 before adjusting for the costs of any expired coverage. A review shows that $1,200 of unexpired insurance coverage remains at year-end. c. Received $6,600 cash in advance from a client for services not yet performed. As of December 31, one-third of the work had been performed. d. As of December 31, salaries expense of $2,400 has been incurred but not yet paid. e. As of December 31, the company has earned, but not yet recorded, $520 of interest revenue. The interest revenue will be received in cash next year. For each of the separate cases, determine the financial statement impact of each required year-end adjusting entry. Fill in the table by indicating the amount and direction ((+) increase or (-) decrease) of the effect. CANON C. d. e. Net Income Total Assets Total Liabilities Total Equity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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