VanBrush Enterprises, a painting contractor, prepared the following adjusting entries at year end a Wages Expense 3,700 Wages Payable 3,700 b Accounts Receivable 6,500 Service Revenue 6,500 c Unearned Revenue 5,245 Service Revenue, Advertising 5,245 d Rent Expense 3,820 Prepaid Rent 3,820 Required ...

Assets Liabilities Equity Re ...

VanBrush Enterprises, a painting contractor, prepared the following adjusting entries at year-end: a. Wages Expense ......... 3,700

Question:

VanBrush Enterprises, a painting contractor, prepared the following adjusting entries at year-end:
a. Wages Expense ......... 3,700
Wages Payable ........ 3,700
b. ...... 6,500
Service Revenue ...... 6,500
c. Unearned Revenue ........ 5,245
Service Revenue,
Advertising ........ 5,245
d. Rent Expense ......... 3,820
Prepaid Rent ......... 3,820

Required:
Show the effect of these adjustments on
(1) Assets, liabilities, and equity and
(2) Revenues, expenses, and net income.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...