Problem 2-33 Effect of adjusting entries on the accounting equation Required Each of the following independent...

Problem 2-33 Effect of adjusting entries on the accounting equation Required Each of the following independent events requires a year-end adjusting entry. Show how each event and its related adjusting entry affect the accounting equation. Assume a December 31 closing date. The first event is recorded as an example

PROBLEM 2-33

The Accounting Equation

	Total Assets			=	Liabilities	+	Stockholders’ Equity
Event/ Adjust.	Cash	+	Other Assets	=		+	Common Stock	+	Retained Earnings
a.
a. Adj.			¹

b.
b. Adj.					²

c.
c. Adj.			³

d.
d. Adj.			⁴

¹$ x /12 = $

²$ x /12 = $

³$ x /12 = $

⁴$ x /12 = $

a. Paid $4,800 cash in advance on October 1 for a one-year insurance policy.

b. Received an $3,600 cash advance for a contract to provide services in the future. The contract required a one-year commitment, starting April 1.

c. Purchased $1,200 of supplies on account. At year’s end, $175 of supplies remained on hand. d. Paid $9,600 cash in advance on August 1 for a one-year lease on office space.

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ekkarill92 answered 10 months ago

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