On August 1, Year 2, Stokes Company paid Eastport Rentals $32,000 for a 12-month lease on...
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On August 1, Year 2, Stokes Company paid Eastport Rentals $32,000 for a 12-month lease on warehouse space. Required a. Record the deferral and the related December 31, Year 2, adjustment for Stokes Company in the accounting equation. b. Record the deferral and the related December 31, Year 2, adjustment for Eastport Rentals in the accounting equation. Complete this question by entering your answers in the tabs below. Required A Required B Record the deferral and the related December 31, Year 2, adjustment for Stokes Company in the accounting equation. (Do not round intermediate calculations and round your final answers to nearest whole dollar. Enter any decreases to account balances with a minus sign.) Event Paid 12 months rent Adjustment for 5 months used STOKES COMPANY Accounting Equation - Year 2 Assets Cash Prepaid Rent = Liabilities = = = + Stockholders' Equity Retained Earnings Common Stock + + + • 1-10 Show how accounting for prepaid items affects financial statements • 1-11 Show how accounting for unearned revenues affects financial statements On August 1, Year 2, Stokes Company paid Eastport Rentals $32,000 for a 12-month lease on warehouse space. Required a. Record the deferral and the related December 31, Year 2, adjustment for Stokes Company in the accounting equation. b. Record the deferral and the related December 31, Year 2, adjustment for Eastport Rentals in the accounting equation. Complete this question by entering your answers in the tabs below. Required A Required B Record the eferral and the related December 31, Year 2, adjustment for Eastport Rentals in the accounting equation. (Do not round intermediate calculations and round your final answers to nearest whole dollar. Enter any decreases to account balances with a minus sign.) Event Received 12 months rent Earned 5 months rent EASTPORT RENTALS Accounting Equation - Year 2 Assets = Liabilities + Unearned Revenue Cash = = = + + + Stockholders' Equity Retained Earnings Common Stock < Required A + + Required B > On August 1, Year 2, Stokes Company paid Eastport Rentals $32,000 for a 12-month lease on warehouse space. Required a. Record the deferral and the related December 31, Year 2, adjustment for Stokes Company in the accounting equation. b. Record the deferral and the related December 31, Year 2, adjustment for Eastport Rentals in the accounting equation. Complete this question by entering your answers in the tabs below. Required A Required B Record the deferral and the related December 31, Year 2, adjustment for Stokes Company in the accounting equation. (Do not round intermediate calculations and round your final answers to nearest whole dollar. Enter any decreases to account balances with a minus sign.) Event Paid 12 months rent Adjustment for 5 months used STOKES COMPANY Accounting Equation - Year 2 Assets Cash Prepaid Rent = Liabilities = = = + Stockholders' Equity Retained Earnings Common Stock + + + • 1-10 Show how accounting for prepaid items affects financial statements • 1-11 Show how accounting for unearned revenues affects financial statements On August 1, Year 2, Stokes Company paid Eastport Rentals $32,000 for a 12-month lease on warehouse space. Required a. Record the deferral and the related December 31, Year 2, adjustment for Stokes Company in the accounting equation. b. Record the deferral and the related December 31, Year 2, adjustment for Eastport Rentals in the accounting equation. Complete this question by entering your answers in the tabs below. Required A Required B Record the eferral and the related December 31, Year 2, adjustment for Eastport Rentals in the accounting equation. (Do not round intermediate calculations and round your final answers to nearest whole dollar. Enter any decreases to account balances with a minus sign.) Event Received 12 months rent Earned 5 months rent EASTPORT RENTALS Accounting Equation - Year 2 Assets = Liabilities + Unearned Revenue Cash = = = + + + Stockholders' Equity Retained Earnings Common Stock < Required A + + Required B >
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1 Prepaid expenses will have to be shown as assets on the financial statements ... View the full answer
Related Book For
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
Posted Date:
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