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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 71
Determine Accountinq Equation Effects of Deferral Adjustments
For each of the following transactions for the Sky Blue Corporation, give the accounting equation effects of the adjustments required at the end of the month on December 31, 2012:
a. Collected $2,400 rent for the period December 1, 2012, to February 28, 2013, which was credited to Unearned Revenue on December 1, 2012.
b. Paid $1,200 for a two-year insurance premium on December 1, 2012, and debited Prepaid Insurance for that amount.
c. Used a machine purchased on December 1, 2012, for $48,000. The company estimates annual depreciation of $4,800.
For each of the following transactions for the Sky Blue Corporation, give the accounting equation effects of the adjustments required at the end of the month on December 31, 2012:
a. Collected $2,400 rent for the period December 1, 2012, to February 28, 2013, which was credited to Unearned Revenue on December 1, 2012.
b. Paid $1,200 for a two-year insurance premium on December 1, 2012, and debited Prepaid Insurance for that amount.
c. Used a machine purchased on December 1, 2012, for $48,000. The company estimates annual depreciation of $4,800.
Explanation
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Verified
a. On December 1, 2012 rent collected $2...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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