For each of the following unrelated situations, determine the financial statement effect using the Transaction Analysis Template: a. Unrecorded depreciation on equipment is $610. b. The Supplies account has a balance of $2,990. Supplies on hand at the end of the period totaled $1,100 . c. On the date for preparing financial statements, an estimated utilities expense of $390 has been incurred incurred, but no utility bill has been received. d. On the first day of the current month, rent for four months was paid and recorded as a $2,800 increase to Prepaid Rent and a $2,800 decrease in Cash. Monthly statements are now being prepared. e. Nine months ago, Solid Insurance Company sold a one-year policy to a customer and recorded the receipt of the premium by increasing Cash and Unearned Premium Revenue for $624. No adjusting entries have been prepared during the nine-month period. Annual financial statements are now being prepared. f. At the end of the accounting period, employee wages of $965 have been incurred but not paid. g. At the end of the accounting period, $300 of interest has been earned but not yet received on notes receivable. Note: Use negative signs with answers, when appropriate.

For each of the following unrelated situations, determine the financial statement effect using the Transaction Analysis Template: a. Unrecorded depreciation on equipment is $610. b. The Supplies account has a balance of $2,990. Supplies on hand at the end of the period totaled $1,100 . c. On the date for preparing financial statements, an estimated utilities expense of $390 has been incurred incurred, but no utility bill has been received. d. On the first day of the current month, rent for four months was paid and recorded as a $2,800 increase to Prepaid Rent and a $2,800 decrease in Cash. Monthly statements are now being prepared. e. Nine months ago, Solid Insurance Company sold a one-year policy to a customer and recorded the receipt of the premium by increasing Cash and Unearned Premium Revenue for $624. No adjusting entries have been prepared during the nine-month period. Annual financial statements are now being prepared. f. At the end of the accounting period, employee wages of $965 have been incurred but not paid. g. At the end of the accounting period, $300 of interest has been earned but not yet received on notes receivable. Note: Use negative signs with answers, when appropriate.

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Description: For each of the following unrelated situations, determine the financial statement effect using the Transaction Analysis Template:a. Unrecorded depreciation on equipment is $610.b. The Supplies account has a balance of $2,990. Supplies on hand at the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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