A. Paid $6,400 cash in advance on October 1 for a one-year insurance policy. B. Received...

A. Paid $6,400 cash in advance on October 1 for a one-year insurance policy.

B. Received an $5,200 cash advance for a contract to provide services in the future. The contract required a one-year commitment, starting April 1.

C. Purchased $2,000 of supplies on account. At year’s end, $255 of supplies remained on hand.

D. Paid $11,520 cash in advance on August 1 for a one-year lease on office space.

The Accounting Equation
Event/ Adjustment	Total Assets			=	Liabilities	+	Stockholders’ Equity
Event/ Adjustment	Cash	+	Other Assets	=	Liabilities	+	Common Stock	+	Retained Earnings
a.		+		=		+		+
a. Adj.		+		=		+		+
b.		+		=		+		+
b. Adj.		+		=		+		+
c.		+		=		+		+
c. Adj.		+		=		+		+
d.		+		=		+		+
d. Adj.		+		=		+		+

Expert Solution

The Accounting Equation
Event/ Adjustment	Total Assets			=	Liabilities	+	Stockholders’ Equity
Event/ Adjustment	Cash	+	Other Assets	=	Liabilities	+	Common Stock	+	Retained Earnings
a.	-6400	+	6400	=		+		+
a. Adj.		+	-1600	=		+		+	-1600
b.	5200	+		=	5200	+		+
b. Adj.		+		=	-3900	+		+	3900
c.		+	2000	=	2000	+		+
c. Adj.		+	-1745	=		+		+	-1745
d.	-11520	+	11520	=		+		+
d. Adj.		+	-4800	=		+		+	-4800

ekkarill92 answered 2 years ago

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