L. Burnett began Burnett Refinishing Service on July 1. Selected accounts are shown below as of July 31, before any accounting adjustments have been made. Prepaid rent Prepaid advertising $16,560 1,512 Supplies 7,200 Unearned refinishing fees 1,440 Refinishing fees revenue 6,000 Using the following information, prepare the accounting adjustments necessary on July 31 using the financial statement effects template. a. On July 1, the firm paid one year's rent of $16,560 in cash. b. On July 1, $1,512 cash was paid to the local newspaper for an advertisement to run daily for the months of July, August, and September. c. Supplies still available at July 31 total $2,640. d. At July 31, refinishing services of $1,920 have been performed but not yet recorded or billed to customers. The firm uses the fees receivable account to reflect amounts due but not yet billed. e. In early July, a customer paid $1,440 in advance for a refinishing project. At July 31, the project is one-half complete. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Transaction a. b. C. d. Cash Asset Prepaid Rent Prepaid Advertising Supplies 0 + 0 ÷ 0 + 0 + + Noncash Assets $ Prepaid Rent S Prepaid Advertising $ Supplies (1,380) - + (504) - (4,560) = ÷ 0- ♦ Balance Sheet Liabilities 0 Unearned Fees Revenue ÷ 0 수 0 # (1.920) + Contrib. Capital 0 + 0 + 0 0 → + Earned Capital Prepaid Rent Prepaid Advertising Supplies (1,380) + (504) + (4,560) + (1,920) Unearned Fees Revenue Revenues 0 + 0 ÷ 0 Income Statement + 1,920 - + Expenses (1.380) - + (504) - ♦ (4,560) = + 0- ◆ Ne
L. Burnett began Burnett Refinishing Service on July 1. Selected accounts are shown below as of July 31, before any accounting adjustments have been made. Prepaid rent Prepaid advertising $16,560 1,512 Supplies 7,200 Unearned refinishing fees 1,440 Refinishing fees revenue 6,000 Using the following information, prepare the accounting adjustments necessary on July 31 using the financial statement effects template. a. On July 1, the firm paid one year's rent of $16,560 in cash. b. On July 1, $1,512 cash was paid to the local newspaper for an advertisement to run daily for the months of July, August, and September. c. Supplies still available at July 31 total $2,640. d. At July 31, refinishing services of $1,920 have been performed but not yet recorded or billed to customers. The firm uses the fees receivable account to reflect amounts due but not yet billed. e. In early July, a customer paid $1,440 in advance for a refinishing project. At July 31, the project is one-half complete. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Transaction a. b. C. d. Cash Asset Prepaid Rent Prepaid Advertising Supplies 0 + 0 ÷ 0 + 0 + + Noncash Assets $ Prepaid Rent S Prepaid Advertising $ Supplies (1,380) - + (504) - (4,560) = ÷ 0- ♦ Balance Sheet Liabilities 0 Unearned Fees Revenue ÷ 0 수 0 # (1.920) + Contrib. Capital 0 + 0 + 0 0 → + Earned Capital Prepaid Rent Prepaid Advertising Supplies (1,380) + (504) + (4,560) + (1,920) Unearned Fees Revenue Revenues 0 + 0 ÷ 0 Income Statement + 1,920 - + Expenses (1.380) - + (504) - ♦ (4,560) = + 0- ◆ Ne
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries
Section21.1: Accruals
Problem 1WT
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Please, Help I'm lost as to what I need to correct.
Transcribed Image Text:Assessing Financial Statement Effects of Adjustments
L. Burnett began Burnett Refinishing Service on July 1. Selected accounts are shown below as of July 31, before any accounting adjustments have been made.
Prepaid rent
Prepaid advertising
Supplies
Unearned refinishing fees
Refinishing fees revenue
Using the following information, prepare the accounting adjustments necessary on July 31 using the financial statement effects template.
a. On July 1, the firm paid one year's rent of $16,560 in cash.
b. On July 1, $1,512 cash was paid to the local newspaper for an advertisement to run daily for the months of July, August, and September.
c. Supplies still available at July 31 total $2,640.
d. At July 31, refinishing services of $1,920 have been performed but not yet recorded or billed to customers. The firm uses the fees receivable account to reflect amounts due but not yet billed.
e. In early July, a customer paid $1,440 in advance for a refinishing project. At July 31, the project is one-half complete.
Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction.
Note: Indicate a decrease in an account category by including a negative sign with the amount.
Transaction
a.
b.
C.
d.
$16,560
1,512
7,200
1,440
6,000
e.
Prepaid Rent
Cash Asset
Supplies
Prepaid Advertising
0
0
◆
0
◆
0
0
◆
Noncash Assets
$
Prepaid Rent
$
Prepaid Advertising
$
Supplies
(1,380)
♦
(504)
◆
(4,560)
0
◆
0 =
Balance Sheet
Liabilities
0
Unearned Fees Revenue
0
0
◆
(1,920)
0
♦
Contrib. Capital
0
◆
0
♦
0
♦
0
♦
0
Earned Capital
Prepaid Rent
Prepaid Advertising
Supplies
(1,380)
♦
(504)
◆
(4,560)
♦
(1,920)
Unearned Fees Revenue
0
♦
Revenues
0
◆
0 -
◆
0
◆
1,920
◆
0
♦
Income Statement
Expenses
= Net Income
(1,380)
(1,380) =
+
(504) =
+
(4,560) =
0 =
◆
0 =
(504)
(4,560)
1,920
0
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