Question: If none of the adjusting journal entries prepared in BE

If none of the adjusting journal entries prepared in BE 2–7 were made, would assets, liabilities, and shareholders' equity on the 12/31/11 balance sheet be higher or lower and by how much?
Prepare the necessary adjusting entries at its year-end of December 31, 2011, for the Jamesway Corporation for each of the following situations. No adjusting entries were made during the year.
1. On December 20, 2011, Jamesway received a $4,000 payment from a customer for services to be rendered early in 2012. Service revenue was credited.
2. On December 1, 2011, the company paid a local radio station $2,000 for 40 radio ads that were to be aired, 20 per month, throughout December and January. Prepaid advertising was debited.
3. Employee salaries for the month of December totaling $16,000 will be paid on January 7, 2012.
4. On August 31, 2011, Jamesway borrowed $60,000 from a local bank. A note was signed with principal and 8% interest to be paid on August 31, 2012.


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  • CreatedJune 24, 2013
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