Question

In: Accounting

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
Cash + Other Assets Common Stock + Retained Earnings
a. + = + +
a. Adj. + = + +
b. + = + +
b. Adj. + = + +
c. + = + +
c. Adj. + = + +
d. + = + +
d. Adj. + = + +

Solutions

Expert Solution

The Accounting Equation
Event/ Adjustment Total Assets = Liabilities + Stockholders’ Equity
Cash + Other Assets 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 1 year ago
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