On December 31, Year 15 Cutoff Corporation reportad total assets of $115,000 pri

Question

On December 31, Year 15 Cutoff Corporation reportad total assets of $115,000 prior to the following acjusting entries Accrued expenses totaled $16,000 Expired insurance which was prepaid totaled $3,000 Rent revenue earned was $21,000: the rent was prepaid by the tenant and credited to uneamed rent revenue Depreciation expense was $22,000 . .Accrued service revenues totaled $26,000 How much are Cutoffs total assets after adjusting entries? · Moving to the next question prevents changes to this arswer. Question 9 of 10

Explanation / Answer

Solution: Cutoff's total assets after adjusting entries = $116,000 Working Notes: Cutoff's total assets Before adjusting entries = $115,000 Accrued expense 0 No effect on assets Expired insurance which was prepaid -3,000 Decrease assets Rent revenue prepaid by tenant 0 No effect on assets Depreciation Expense -22,000 Decrease assets Accrued service revenue 26,000 Increase assets Cutoff's total assets after adjusting entries = $115,000-3,000-22,000+26,000 =$116,000 Please feel free to ask if anything about above solution in comment section of the question.

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