The Boeing Company describes itself as follows in its first footnote:"We areone of the world's major aerospace firms. We are organized based on the products and services we offer. We operate in four reportable segments: Commercial Airplanes (BCA); Defense, Space & Security (BDS); Global Services (BGS); Boeing Capital (BCC)."

Use the following information to provide the adjusting journal entry that Boeing should have made on Dec. 31, 2021. Assume that Boeing makes adjusting entries once a year on Dec. 31.

1. Boeing's property and equipment depreciated $1,488 million during 2021.

Account Title	Debit	Credit

1. On January 1, 2021, Boeing received $52,980 million as advance payment for commercial aircrafts to be delivered evenly over the next three years. On January 1, Boeing made the following journal entry:

Dr. Cash		52,980 million
	Cr. Unearned Revenue		52,980 million

Boeing did not make any journal entries related to the Unearned Revenue after the initial journal entry shown above. What adjusting journal entry should Boeing make on December 31, 2021 related to the unearned revenue?

Account Title	Debit	Credit

1. On March 1, 2021, Boeing paid $480 million for future advertising that will be released over the subsequent 12-month period (i.e., March 1, 2021 to February 28, 2022). On March 1, Boeing made the following journal entry:

Dr. Prepaid Advertising		480 million
	Cr. Cash		480 million

Boeing did not make any journal entries related to the prepaid advertising after the initial journal entry shown above. What adjusting journal entry should Boeing make on December 31, 2021 related to the prepaid advertising?

Account Title	Debit	Credit

1. Boeing receives a utility bill every four weeks for the previous four weeks. On January 25, 2022, Boeing received a bill of $76 million covering the first three weeks of 2022 and the last week of 2021. Assuming that utilities are used evenly over the period, what adjusting journal entry should Boeing make on December 31, 2021 related to this future utility bill?

Account Title	Debit	Credit

1. At the end of 2021, Boeing owed employees $6,573 million related to work completed (but not yet paid) during 2021. What adjusting journal entry should Boeing make on December 31, 2021 related to these wages owed to employees?

Account Title	Debit	Credit

1. At the end of 2021, Boeing calculates that it has earned but not yet received or recorded $2,641 million of sales on account. What adjusting journal entry should Boeing make on December 31, 2021 related to the sales on account?

Account Title	Debit	Credit

1. On January 1, 2021, Boeing had $160 million in Supplies, and they purchased $882 million more in Supplies during 2021. A year-end measurement of Boeing's Supplies indicates that they have $57 million worth of Supplies remaining as of December 31, 2021. If Boeing did not make journal entries when they used Supplies during 2021, what adjusting journal entry should Boeing make related to its Supplies on December 31, 2021?

Account Title	Debit	Credit

This problem continues on the next page.

For parts h-k, describe, when applicable, the impact (if the item is overstated or understated) on the items listed on the Income Statement (revenues or expenses and net income) and the items shown on the Balance Sheet (assets, liabilities, retained earnings, and stockholders' equity). Note, when a few entries are listed in the same part, the impacts are the same for all of them. Put an "X" in the proper box. If there is no impact, leave the box blank.

1. What is the effect on the income statement and the balance sheet if entries a), orc), or g) were omitted?

	Income Statement	Balance Sheet
	Revenues	Expenses	Net Income	Assets	Liabilities	RE/SE
Understated
Overstated

1. What is the effect on the income statement and the balance sheet if entry b) was omitted?

	Income Statement	Balance Sheet
	Revenues	Expenses	Net Income	Assets	Liabilities	RE/SE
Understated
Overstated

1. What is the effect on the income statement and the balance sheet if entries d) or e) were omitted?

	Income Statement	Balance Sheet
	Revenues	Expenses	Net Income	Assets	Liabilities	RE/SE
Understated
Overstated

1. What is the effect on the income statement and the balance sheet if entry f)was omitted?

	Income Statement	Balance Sheet
	Revenues	Expenses	Net Income	Assets	Liabilities	RE/SE
Understated
Overstated