Consider the following situations for Shocker: 1. On November 28, 2024, Shocker received a $3,000 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue was credited on November 28. 2. On December 1, 2024, the company paid a local radio station $2,400 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising was debited on December 1. 3. Employee salaries for the month of December totaling $7,000 will be paid on January 7, 2025. 4. On August 31, 2024, Shocker borrowed $60,000 from a local bank. A note was signed with principal and 8% interest to be paid on August 31, 2025. Required: Indicate by how much the assets, liabilities, and stockholders' equity in the December 31, 2024, balance sheet is higher or lower if the adjusting entry is not recorded. (If none of the categories apply for a particular item, leave the cell blank.)

Consider the following situations for Shocker: 1. On November 28, 2024, Shocker received a $3,000 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue was credited on November 28. 2. On December 1, 2024, the company paid a local radio station $2,400 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising was debited on December 1. 3. Employee salaries for the month of December totaling $7,000 will be paid on January 7, 2025. 4. On August 31, 2024, Shocker borrowed $60,000 from a local bank. A note was signed with principal and 8% interest to be paid on August 31, 2025. Required: Indicate by how much the assets, liabilities, and stockholders' equity in the December 31, 2024, balance sheet is higher or lower if the adjusting entry is not recorded. (If none of the categories apply for a particular item, leave the cell blank.)

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter11: Work Sheet And Adjusting Entries

Section: Chapter Questions

Problem 2E: On October 31, the Vermillion Igloos Hockey Club received 800,000 in cash in advance for season...

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