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    Item (A) Type of Adjustment (B) Accounts Before Adjustment

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    suci monalia putri
    1. The document lists various types of adjusting entries that affect different accounts in different ways. Accrued revenues and prepaid expenses adjust asset accounts, while accrued expenses and unearned revenue adjust liability and expense accounts. 2. Specifically, it notes that accrued revenues understate assets and overstate revenues, while prepaid expenses overstate assets and understate expenses. Accrued expenses understate expenses and liabilities, and unearned revenue overstates liabilities and understates revenues. 3. The document provides examples of how different types of adjusting entries impact the balance sheet and income statement accounts.

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    Item (A) Type of Adjustment (B) Accounts Before Adjustment

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    suci monalia putri
    74 views11 pages
    1. The document lists various types of adjusting entries that affect different accounts in different ways. Accrued revenues and prepaid expenses adjust asset accounts, while accrued expenses and unearned revenue adjust liability and expense accounts. 2. Specifically, it notes that accrued revenues understate assets and overstate revenues, while prepaid expenses overstate assets and understate expenses. Accrued expenses understate expenses and liabilities, and unearned revenue overstates liabilities and understates revenues. 3. The document provides examples of how different types of adjusting entries impact the balance sheet and income statement accounts.

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    Book1

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    1. The document lists various types of adjusting entries that affect different accounts in different ways. Accrued revenues and prepaid expenses adjust asset accounts, while accrued expenses and unearned revenue adjust liability and expense accounts. 2. Specifically, it notes that accrued revenues understate assets and overstate revenues, while prepaid expenses overstate assets and understate expenses. Accrued expenses understate expenses and liabilities, and unearned revenue overstates liabilities and understates revenues. 3. The document provides examples of how different types of adjusting entries impact the balance sheet and income statement accounts.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    74 views11 pages

    Item (A) Type of Adjustment (B) Accounts Before Adjustment

    Uploaded by

    suci monalia putri
    1. The document lists various types of adjusting entries that affect different accounts in different ways. Accrued revenues and prepaid expenses adjust asset accounts, while accrued expenses and unearned revenue adjust liability and expense accounts. 2. Specifically, it notes that accrued revenues understate assets and overstate revenues, while prepaid expenses overstate assets and understate expenses. Accrued expenses understate expenses and liabilities, and unearned revenue overstates liabilities and understates revenues. 3. The document provides examples of how different types of adjusting entries impact the balance sheet and income statement accounts.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 11

    Item (a) Type Of Adjustment (b) Accounts before Adjustment

    1 Accrued Revenues Asset Understated


    Revenues Understated
    2 Prepaid Expenses Assets Overstated
    Expenses Understated
    3 Accrued Expenses Expenses Understated
    Liabilities Understated
    4 Unearned Revenue Liabilities Overstated
    Revenues Understated
    5 Accrued Expenses Expenses Understated
    Liabilities Understated
    6 Prepaid Expenses Assets Overstated
    Expenses Understated
    Date Account Titles and Explanation Reff Debit
    Aug.31 Insurance Expense (400 x 3) 722 1,200
    Prepaid Insurance 130
    Aug.31 Supplies Espense (3.300 - 900) 631 2,400
    Supplies 126
    Aug.31 Depreciation Expense
    ( 4.500 x 1//4) + (2.400 x 1/4) 711 1,725
    Accumulated Depreciation
    Buildings 144
    Accumulated Depreciation
    Equipment 158
    Des.31 Unearned Rent Revenue 208 4,100
    Rent Revenue 429
    Aug.31 Salaries and Wages Expense 726 400
    Salaries and Expense Payable 212
    Aug.31 Accounts Receivable 112 3,700
    Rent Revenue 429
    Aug.31 Interest Expense 718 600
    Interest Payable
    [(80.000 x 9%) x 1/12 230
    Total 14,125
    Credit

    1,200

    2,400

    1,125

    600

    4,100

    400

    3,700

    600
    14,125
    COSTELLO ADVERTISING AGENCY, SpA
    Statement Of Financial Position
    December 31, 2017
    Asset
    Equipment 60,000
    Less: Accumulated depreciation - Equipment 33,000 27,000
    Prepaid Insurance 2,500
    Supplies 5,000
    Account Receivable 23,500
    Cash 11,000
    Total Asset 69,000
    Equity and Liabilities
    Equity
    Share capital-ordinary 20,000
    Retained earnings 31,950 51,950
    Liabilities
    Notes payable 5,000
    Accounts payable 5,000
    Unearned service revenue 5,600
    Interest payable 150
    Salaries and wages payable 1,300 17,050
    Total equity and liabilities 69,000
    Date Explanation Ref Debit Credit Balance
    Sept. 8 1,200 1,200
    25 1,360 2,560
    30 Adjusting 400 2,960
    20 3,800
    20 4,500 3,420
    22 500 2,920
    25 1,360 1,560
    29 750 2,310
    COSTELLO ADVERTISING Sp A
    Income Statement
    For the Year Ended Desember 31, 2017
    Revenue
    Service Revenue 65,700
    Expenses
    Salaries and Wages Expense 11.300 
    Depreciation Expense 7.000 
    Rent Expense 4.000 
    Supplies expense 3,600
    Insurance expense 850
    Interest expense 500
    Total expense 27,250
    Net Income 38,450
    LAZY RIVER RESORT, LTD.+A1:C9
    Income Statement
    For the Year Ended Agustus 31, 2017
    Revenue
    Rent Revenue 87,800
    Expenses
    Salaries and wages expense 51,400
    Depreciation Expense 9,400
    Utilities expense 3,600
    Maintenance and repairs expense 2,400
    Supplies expense 1,725
    Insurance expense 1,200
    Interest expense 600
    Total expense 70,325
    Net Income 17,475
    LAZY RIVER RESORT LTD
    Adjusted Trial Balance
    Aug. 31 2017
    Debit Credit
    Cash 19,600
    Accounts Receivable 3,700
    Supplies 900
    Prepaid Insurance 4,800
    Land 25,000
    Buildings 125,000
    Accumulated Depreciation-Buildings 1,125
    Equipment 26,000
    Accumulated Depreciation-Equipment 600
    Accounts Payable 6,500
    Unearned Rent Revenue 3,300
    Salaries and Wages Payable 400
    Interest Payable 600
    Mortgage Payable 80,000
    Share Capital-Ordinary 100,000
    Dividens 5,000
    Rent Revenue 87,800
    Maintenance and Repairs Expense 3,600
    Supplies Expense 2,400
    Depreciation Expense 1,725
    Interest Expense 600
    Insurance Expense 1,200
    Salaries and Wages Expense 51,400
    Utilities Expense 9,400
    Total 280,325 280,325
    COSTELLO ADVERTISING Sp A
    Retained Earning Statement
    For the Year Ended Desember 31, 2017
    Retained Earnings, Januari 1 5,500
    Add: Net Income 38,450
    43,950
    Less: Dividens 12,000
    Retained Earnings, Desember 31 31,950
    LAZY RIVER RESORT, LTD.
    Retained Earnings Statement
    For the Year Ended Agustus 31, 2017
    Retained Earnings, June 1 0
    Add: Net Income 17,745
    17,745
    Less: Dividens 5,000
    Retained Earnings, August 31 12,475

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