Consider the following situations for Shocker: 1. On November 28, 2021, Shocker receives a $3,150 payment...

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Consider the following situations for Shocker: 1. On November 28, 2021, Shocker receives a $3,150 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited. 2. On December 1, 2021, the company pays a local radio station $2,430 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited. 3. Employee salaries for the month of December totaling $7,100 will be paid on January 7, 2022. 4. On August 31, 2021, Shocker borrows $61,000 from a local bank. A note is signed with principal and 9% interest to be paid on August 31, 2022. Required: Indicate by how much the assets, liabilities, and stockholders' equity in the December 31, 2021, balance sheet is higher or lower if the adjustment is not recorded. (If none of the categories apply for a particular item, leave the cell blank.) Answer is not complete. Assets Liabilities Stockholders' Equity 1. $ 3,150 Higher 2. 2,430 Higher 3. 4. Total $ 2,430 Higher $ 3,150 Higher $ 1,527 Higher Consider the following situations for Shocker: 1. On November 28, 2021, Shocker receives a $3,150 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited. 2. On December 1, 2021, the company pays a local radio station $2,430 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited. 3. Employee salaries for the month of December totaling $7,100 will be paid on January 7, 2022. 4. On August 31, 2021, Shocker borrows $61,000 from a local bank. A note is signed with principal and 9% interest to be paid on August 31, 2022. Required: Indicate by how much the assets, liabilities, and stockholders' equity in the December 31, 2021, balance sheet is higher or lower if the adjustment is not recorded. (If none of the categories apply for a particular item, leave the cell blank.) Answer is not complete. Assets Liabilities Stockholders' Equity 1. $ 3,150 Higher 2. 2,430 Higher 3. 4. Total $ 2,430 Higher $ 3,150 Higher $ 1,527 Higher

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1 Payment received for services not yet rendered Assets If the adjustment is not recorded the cash r... View the full answer