Assume a recent annual report of Dow Jones & Company, the world leader in business and financial news and information (and publisher of The Wall Street Journal), included the following accounts. Dollars are in millions.

Required
1. For each T-account, describe the typical transactions that cause it to increase and decrease.
2. Express each T-account in equation format (Beginning + Increase Side − Decrease Side = Ending) and then solve for the missing amounts (in millions). For example, the Accounts Receivable T-account can be expressed as 313 + 2,573 − x = 295. By rearranging the equation, you can solve for 313 + 2,573 − 295 = x.

Transcribed Image Text:

dr + Prepaid Expenses (A) cr - 1/1 43 y dr + Accounts Receivable (A) dr – Unearned Revenue (L) cr + 1/1 cr – 240 313 1/1 2,573 X 25 328 12/31 12/31 12/31 295 26 253