LO3 3-34. Assessing Financial Statement Effects of Adjustments L. Burnett began
ID: 2335276 • Letter: L
Question
LO3 3-34. Assessing Financial Statement Effects of Adjustments L. Burnett began Burnett Refinishing Service on July 1. Selected accounts are shown below as of July 31, before any accounting adjustments have been made. Debit Credit $6,900 630 3,000 Prepaid rent. Supplies. Unearned refinishing fees. $ 600 2,500 Using the following information, prepare the accounting adjustments necessary on July 31 using the financial statement effects tempiate a. On July 1, the firm paid onee's rent of $6,900 in cash b. On July 1, S630 cash was paid to the local newspaper for an advertisement to run daily for the months of July, August, and September.Explanation / Answer
Assets
Liability
Revenue
Expenses
Prepaid rent
Prepaid Advertising
Supplies
Fees Receivable
unearned Refinishing fees
Refinishing fees revenue
Rent Expense
Advertisement Expense
Supplies expense
Unadjusted balance
$ 6,900.00
$ 630.00
$ 3,000.00
$ 600.00
$ 2,500.00
a
$ (575.00)
$ 575.00
New Balance
$ 6,325.00
$ 630.00
$ 3,000.00
$ -
$ 600.00
$ 2,500.00
$ 575.00
$ -
$ -
b
$ (210.00)
$ 210.00
New Balance
$ 6,325.00
$ 420.00
$ 3,000.00
$ -
$ 600.00
$ 2,500.00
$ 575.00
$ 210.00
$ -
c
$ (1,900.00)
$ 1,900.00
New Balance
$ 6,325.00
$ 420.00
$ 1,100.00
$ -
$ 600.00
$ 2,500.00
$ 575.00
$ 210.00
$ 1,900.00
d
$ 800.00
$ 800.00
New Balance
$ 6,325.00
$ 420.00
$ 1,100.00
$ 800.00
$ 600.00
$ 3,300.00
$ 575.00
$ 210.00
$ 1,900.00
e
$ (300.00)
$ 300.00
Adjusted balances
$ 6,325.00
$ 420.00
$ 1,100.00
$ 800.00
$ 300.00
$ 3,600.00
$ 575.00
$ 210.00
$ 1,900.00
Notes
Since no format was provided, I have used my own . Please comment if you want any further explanation.
Assets
Liability
Revenue
Expenses
Prepaid rent
Prepaid Advertising
Supplies
Fees Receivable
unearned Refinishing fees
Refinishing fees revenue
Rent Expense
Advertisement Expense
Supplies expense
Unadjusted balance
$ 6,900.00
$ 630.00
$ 3,000.00
$ 600.00
$ 2,500.00
a
$ (575.00)
$ 575.00
New Balance
$ 6,325.00
$ 630.00
$ 3,000.00
$ -
$ 600.00
$ 2,500.00
$ 575.00
$ -
$ -
b
$ (210.00)
$ 210.00
New Balance
$ 6,325.00
$ 420.00
$ 3,000.00
$ -
$ 600.00
$ 2,500.00
$ 575.00
$ 210.00
$ -
c
$ (1,900.00)
$ 1,900.00
New Balance
$ 6,325.00
$ 420.00
$ 1,100.00
$ -
$ 600.00
$ 2,500.00
$ 575.00
$ 210.00
$ 1,900.00
d
$ 800.00
$ 800.00
New Balance
$ 6,325.00
$ 420.00
$ 1,100.00
$ 800.00
$ 600.00
$ 3,300.00
$ 575.00
$ 210.00
$ 1,900.00
e
$ (300.00)
$ 300.00
Adjusted balances
$ 6,325.00
$ 420.00
$ 1,100.00
$ 800.00
$ 300.00
$ 3,600.00
$ 575.00
$ 210.00
$ 1,900.00
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