Example for Adjusting Entries and Effect in Income Statement and Balance Sheet
{"Image DocumentName": "Example for Adjusting Entries and Effect in Income Statement and Balance Sheet", "Image ImageDescription": "The following additional information is available for the month just ended: a. Amortization of  50 per month will be taken on the furniture. b. It is estimated that the store equipment will have no value at the end of its estimated five-year (or 60-month) useful life. Barbara Schmidt will record a full month of amortization for August. c. It was determined that the balance in unearned revenue at August 31 should be  420. d. The prepaid insurance represents six months of insurance beginning August 1. e. Accrued revenues at August 31 totaled  65. Required. 1. Prepare the adjusting entries needed on August 31, 2011, to record the previously unrecorded items. 2. Prepare T-accounts for accounts affected by the adjusting entries. Post the adjusting entries to the T-accounts. 3. Prepare an adjusted trial balance. 4. Prepare an income statement, a statement of owner\u2019s equity, and a balance sheet.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}