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Home / Questions / Each of the following transactions for Morrison Company requires an adjusting entry, which

Each of the following transactions for Morrison Company requires an adjusting entry, which

Each of the following transactions for Morrison Company requires an adjusting entry, which if omitted, will overstate or understate assets, liabilities, stockholders’ equity, revenues, expenses, or net income. Indicate the amount and direction of the misstatement that would result if the end of period adjusting entry suggested by the transaction was omitted. Place your results in the table following the transactions and use (+) for overstate, (-) for understate, and (NE) for no effect.

1.  Morrison purchased supplies on December 1 for $900.  On December 31, $350 of supplies were on hand.
2.  Prepaid insurance had a debit balance of $5,400 on December 1, which represented a prepayment for 2 years of insurance.
3.  The unearned rent revenue account has a credit balance of $390 on December 1, which represents 3 months rent.
 

Transaction

Assets

Liabilities

Stockholders’ Equity

Revenues

Expenses

Net Income

1.

 

 

 

 

 

 

2.

 

 

 

 

 

 

3.

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 


 


 

 

179. The end-of-period spreadsheet (work sheet) for the current year for Jamal Company shows Balance Sheet columns with a debit total of $614,210 and a credit total of $630,430.  This is  before the amount for net income or net loss has been included.  In preparing the income statement from work sheet, what is the amount of net income or net loss? 


 


 


 


 

 

180. Identify which of the following accounts should be closed with a debit or a credit to Income Summary at the end of the fiscal year.  If it is not closed to Income Summary, mark as n/a.

1.  Utilities Payable
2.  Utilities Expense
3.  Supplies
4.  Supplies Expense
5.  Fees Earned
6.  Unearned Fees
7.  Accounts Receivable
8.  Dividends
9.  Capital Stock
10.  Accumulated Depreciation - Equipment
11.  Depreciation Expense - Equipment
12.  Equipment
13. Prepaid Insurance
14. Insurance Expense
15. Retained Earnings 


 


 


 


 

 

181. The balances for the accounts listed below appeared in the Adjusted Trial Balance columns of the work sheet. Indicate whether each balance should be extended to (a) the Income Statement columns or (b) the Balance Sheet columns.
 

(1)

Salaries Payable

 

 

(7)

Retained Earnings

 

(2)

Fees Earned

 

 

(8)

Equipment

 

(3)

Accounts Payable

 

 

(9)

Accounts Receivable

 

(4)

Capital Stock

 

 

(10)

Accumulated Depreciation

 

(5)

Supplies Expense

 

 

(11)

Salary Expense

 

(6)

Unearned Rent

 

 

(12)

Depreciation Expense

Dec 09 2019 View more View Less

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