On December 31, 2016, before preparing and recording adjusting entries, Quartend

Question

On December 31, 2016, before preparing and recording adjusting entries, Quartend Corporation reported total assets of $114,763 and total liabilities of $50,970 prior to the following adjusting entries: 4. Rent revenue earned was $12,600; a tenant prepaid the rent: Quartend credited unearned rent revenue Depreciation expense was $1,770 Previously deferred rent expense totaled $20,960 Accrued interest owed totaled $273 How much are Cutoff's total assets after adjusting entries? How much are Cutoff's total liabilities after adjusting entries? Use the space below to calculate your answers:

Explanation / Answer

Note: rent revenue earned is income for the company so it increases the asset balance.and this rent is prepaid rent so decrease the liability side.

Depreciation reduce the asset balance

Accured interest is income for the entity

Particulars liabilities assets Balance before adjustment entries $ 50970 $ 114763 Rent revenue earned (12600) 12600 Depreciation - (1770) Accured interest (income) - 273 Balance after adjustment entries 38370 125866

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.