C Chegg Study | Guided So x M Final Exam Dezto. mheducation.com/hm.tpx The follo

Question

C Chegg Study | Guided So x M Final Exam Dezto. mheducation.com/hm.tpx The following items present a sample of business activities involving Dry Cleaner Corporation (DCC) for the year ended December 31. DCC provides cleaning services for individual customers and for employees of several large companies in the city Dec1: Dec 7: DCC's owner paid $13,950 cash to acquire 310 of DCC's common shares DCC ordered cleaning supplies at a total cost of $1,800. The supplies are expected to be received in early January Dec 17: Customers paid $230 cash to DCC to obtain DCC gift cards that they could use to obtain future cleaning services at no additional cost. DCC ran advertising in the local newspaper today at a total cost of $560. DCC is not required to pay for the advertising until January 21 Dec 21: Dec 22: DCC paid $1,500 to the landlord for January rent. Dec 23: DCC's owner sold 15 of his own DSS common shares to a private investor, at a selling price of $825 Dec 28: DCC paid in full for the advertising run in the local newspaper on December 21. Dec 29: The cleaning supplies ordered on December 7 were received today. DCC does not have to pay for these supplies until January 29 Dec 31: Today, DCC completed cleaning services for several large companies at a total price of $2,600. The companies are expected to pay for the services by January 31. alue Required Information 5.00 points Required 1. Indicate the accounting equation effects of each of the following item. Reference each transaction by date. (Enter any decreases to account balances with a minus sign.) Assets Liabilities Stockholders' Equit Dec 01 Dec 07 Dec 17 Dec 21 3 8:26

Explanation / Answer

3.The two adjustments that DCC will be required to make before it can prepare a final income statement for December.

1 Date Asset = Liabilities + Stockholder's Equity Dec-01 Cash + 13,950 Common Stock +13950 Dec-07 Cleaning Supplies+1800 Accounts Payable+1800 Dec-17 Cash+230 Unearned Revenue+230 Dec-21 Accounts Payable+560 Advertistment Expense-560 Dec-22 Prepaid Rent +1500 Cash -1500 Dec-23 NE Dec-28 Cash -560 Accounts Payable -560 Dec-29 Supplies +1800 Cleaning supplies -1800 Dec-31 Accounts Receivable +2600 Cleaning Services +2600

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