Exam 11: Preparing a Worksheet for a Merchandise Company

For each of the following, identify in Column 1 the balance the account will have in the adjusted trial balance columns (debit or credit), in Column 2 the financial statement column(s) in which the account balance will be found (income statement or balance sheet), and in Column 3 the effect the account will have on the determination of net income (increase, decrease, or none). -

The financial statement on which Unearned Rent Revenue would appear is:

When the adjustment is made for depreciation, the Depreciation Expense account is increased and the Accumulated Depreciation account is decreased.