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Transaction Analysis and Adjustments Selected accounts of Ideal Properties Inc., a real estate management firm, are shown below as of January 31, before any adjustments have been made: Unadjusted Account Balances Prepaid insurance $6,660 Supplies 1,930 Office equipment 5,952 Unearned rent revenue 5,250 Salaries expense 3,100 Rent revenue 15,000 Monthly financial statements are prepared. Using the Transaction Analysis Template, determine the financial statement effect of the following adjustments as of January 31: a. Prepaid Insurance represents a three-year premium paid on January 1. b. Supplies of $850 were on hand January 31. c. Office equipment is expected to last eight years. Depreciation is recorded monthly. d. On January 1, the firm collected six months' rent in advance from a tenant renting space for $875 per month. e. Accrued salaries not recorded as of January 31 are $490. Note: Use negative signs with answers, when appropriate. Balance Sheet Income Statement Stockholders' Transaction Assets Liabilities Equity Expenses = Net Income Revenues a. Adjustment for prepaid insurance. b. Adjustment for supplies C. Adjustment for office equipment. d. Adjustment for rent collected in advance. e. Adjustment for accrued salaries.

Transaction Analysis and Adjustments Selected accounts of Ideal Properties Inc., a real estate management firm, are shown below as of January 31, before any adjustments have been made: Unadjusted Account Balances Prepaid insurance $6,660 Supplies 1,930 Office equipment 5,952 Unearned rent revenue 5,250 Salaries expense 3,100 Rent revenue 15,000 Monthly financial statements are prepared. Using the Transaction Analysis Template, determine the financial statement effect of the following adjustments as of January 31: a. Prepaid Insurance represents a three-year premium paid on January 1. b. Supplies of $850 were on hand January 31. c. Office equipment is expected to last eight years. Depreciation is recorded monthly. d. On January 1, the firm collected six months' rent in advance from a tenant renting space for $875 per month. e. Accrued salaries not recorded as of January 31 are $490. Note: Use negative signs with answers, when appropriate. Balance Sheet Income Statement Stockholders' Transaction Assets Liabilities Equity Expenses = Net Income Revenues a. Adjustment for prepaid insurance. b. Adjustment for supplies C. Adjustment for office equipment. d. Adjustment for rent collected in advance. e. Adjustment for accrued salaries.

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter3: Basic Accounting Systems: Accrual Basis
Section: Chapter Questions
Problem 3.6.1P: Adjustment process and financial statements Adjustment data for Ms. Ellen’s Laundry Inc. for the...
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I'm having difficulty with this question, by getting the rest of the values from the given prices, as well as understanding where to place some of the prices.

 
 
Transaction Analysis and Adjustments Selected accounts of Ideal Properties Inc., a real estate management firm, are shown below as of January 31, before any adjustments have been made: Unadjusted Асcount Balances Prepaid insurance $6,660 Supplies 1,930 Office equipment 5,952 Unearned rent revenue 5,250 Salaries expense 3,100 Rent revenue 15,000 Monthly financial statements are prepared. Using the Transaction Analysis Template, determine the financial statement effect of the following adjustments as of January 31: a. Prepaid Insurance represents a three-year premium paid on January 1. b. Supplies of $850 were on hand January 31. c. Office equipment is expected to last eight years. Depreciation is recorded monthly. d. On January 1, the firm collected six months' rent in advance from a tenant renting space for $875 per month. e. Accrued salaries not recorded as of January 31 are $490. Note: Use negative signs with answers, when appropriate. Balance Sheet Income Statement Stockholders' Transaction Assets Liabilities Equity Revenues Expenses = Net Income + a. Adjustment for prepaid insurance. b. Adjustment for supplies c. Adjustment for office equipment. d. Adjustment for rent collected in advance. e. Adjustment for accrued salaries. Check
Transcribed Image Text:Transaction Analysis and Adjustments Selected accounts of Ideal Properties Inc., a real estate management firm, are shown below as of January 31, before any adjustments have been made: Unadjusted Асcount Balances Prepaid insurance $6,660 Supplies 1,930 Office equipment 5,952 Unearned rent revenue 5,250 Salaries expense 3,100 Rent revenue 15,000 Monthly financial statements are prepared. Using the Transaction Analysis Template, determine the financial statement effect of the following adjustments as of January 31: a. Prepaid Insurance represents a three-year premium paid on January 1. b. Supplies of $850 were on hand January 31. c. Office equipment is expected to last eight years. Depreciation is recorded monthly. d. On January 1, the firm collected six months' rent in advance from a tenant renting space for $875 per month. e. Accrued salaries not recorded as of January 31 are $490. Note: Use negative signs with answers, when appropriate. Balance Sheet Income Statement Stockholders' Transaction Assets Liabilities Equity Revenues Expenses = Net Income + a. Adjustment for prepaid insurance. b. Adjustment for supplies c. Adjustment for office equipment. d. Adjustment for rent collected in advance. e. Adjustment for accrued salaries. Check
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