Assessing Financial Statement Effects of Transactions and Adjustments Selected accounts of Piotroski Properties, a real estate management firm, are shown below as of January 31, before any accounts have been adjusted. Prepaid Insurance Supplies Office Equipment Unearned Rent Revenue Salaries Expense Rent Revenue Piotroski properties prepares monthly financial statements. Using the following information, adjust the accounts as necessary on January 31, using the financial statement effects template. (a) Prepaid insurance represents a three-year premium paid on January 1. (b) Supplies of $850 were still available on January 31. (c) Office equipment is expected to last eight years (or 96 months). (d) The unearned rent revenue represents six months of rent received in advance on January 1. (e) Salaries of $490 have been earned by employees but yet not recorded as of January 31. Balance Sheet Transaction $6,660 1,930 8,928 5,250 3,100 15,000 (a) (b) (C) (d) (e) Check Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital Revenue Income Statement - Expenses - Net Income

Assessing Financial Statement Effects of Transactions and Adjustments Selected accounts of Piotroski Properties, a real estate management firm, are shown below as of January 31, before any accounts have been adjusted. Prepaid Insurance Supplies Office Equipment Unearned Rent Revenue Salaries Expense Rent Revenue Piotroski properties prepares monthly financial statements. Using the following information, adjust the accounts as necessary on January 31, using the financial statement effects template. (a) Prepaid insurance represents a three-year premium paid on January 1. (b) Supplies of $850 were still available on January 31. (c) Office equipment is expected to last eight years (or 96 months). (d) The unearned rent revenue represents six months of rent received in advance on January 1. (e) Salaries of $490 have been earned by employees but yet not recorded as of January 31. Balance Sheet Transaction $6,660 1,930 8,928 5,250 3,100 15,000 (a) (b) (C) (d) (e) Check Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital Revenue Income Statement - Expenses - Net Income

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter4: Income Measurement And Accrual Accounting

Section: Chapter Questions

Problem 4.8P

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