For each of the following situations prepare the adjusting entry
For each of the following situations, prepare the adjusting entry for the month ended May 3l and indicate the effect each adjustment would have on net income:
A. The May telephone bill for Scheele Company arrived in the accounting department on June 8. The invoice totaled $210.
B. Bailey, Inc., had an arrangement with a local newspaper to run a full-page advertisement every Sunday. The cost of each ad was $350. The newspaper sends Bailey a bill on the 15th of the next month. There were four Sundays in the month of May.
C. Santoni borrowed $50,000 on October 1. The terms of the note called for repayment of principal and interest of 7 percent one year from the date of the note. Santoni prepares monthly financial statements.
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