In each of the following transactions (a) through (c) for Catena's Marketing Company, indicate the amounts and the direction of effects of the adjusting entry on the elements of the balance sheet and income statement. Indicate for increase, - for decrease. (Reductions in account balances should be indicated with a minus sign.) a. Collected $2,400 rent for the period December 1 of the current year to April 1 of next year, which was credited to Unearned Rent Revenue on December 1 b. Purchased a machine for $46,000 cash on January 1. The company estimates annual depreciation at $4,000. c. Paid $3,800 for a two-year insurance premium on July 1 of the current year; debited Prepaid Insurance for that amount. Balance Sheet Income Statement Stockholders' Liabilities Assets Transaction Revenues Expenses Net Income Equity а. b. с.

In each of the following transactions (a) through (c) for Catena's Marketing Company, indicate the amounts and the direction of effects of the adjusting entry on the elements of the balance sheet and income statement. Indicate for increase, - for decrease. (Reductions in account balances should be indicated with a minus sign.) a. Collected $2,400 rent for the period December 1 of the current year to April 1 of next year, which was credited to Unearned Rent Revenue on December 1 b. Purchased a machine for $46,000 cash on January 1. The company estimates annual depreciation at $4,000. c. Paid $3,800 for a two-year insurance premium on July 1 of the current year; debited Prepaid Insurance for that amount. Balance Sheet Income Statement Stockholders' Liabilities Assets Transaction Revenues Expenses Net Income Equity а. b. с.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter22: End-of-fiscal-period Work For A Corporation

Section: Chapter Questions

Problem 1AP

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