The Jamesway Corporation had the following situations on December 2021. On December 10, 2021, Jamesway received...

The Jamesway Corporation had the following situations on December 2021.

On December 10, 2021, Jamesway received a $4,000 payment from a customer for services begun on that date and which were completed by December 31, 2021. Deferred service revenue was credited.
On December 1, 2021, the company paid a local radio station $2,000 for 40 radio ads that were to be aired, 20 per month, throughout December and January. Prepaid advertising was debited.
Employee salaries for the month of December totaling $16,000 will be paid on January 7, 2022.
On August 31, 2021, Jamesway borrowed $60,000 from a local bank. A note was signed with principal and 8% interest to be paid on August 31, 2022.

If none of the adjusting journal entries were recorded, would assets, liabilities, and shareholders’ equity on the 12/31/2021 balance sheet be higher or lower and by how much?

Expert Solution

ekkarill92 answered 2 years ago

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