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P$4-4($Algo$)$ Determining Financial Statement Effects of Adjusting Entries LO$4-1$

$[$The following information applies to the questions displayed below.$]$

All of the current year's entries for Zimmerman Company have been made, except the following adjusting entries. The company's annual accounting year ends on December $31$

a$.$ On September $1$ of the current year, Zimmerman collected six months' rent of $\backslash$$$8,760$ on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $\backslash$$$8,760.$

b$.$ On October $1$ of the current year, the company borrowed $\backslash (\backslash$$ $20,400\backslash )$ from a local bank and signed a one$-$year, $10$ percent note for that amount. The principal and interest are payable on the maturity date.

c$.$ Depreciation of $\backslash (\backslash$$ $2,200\backslash )$ must be recognized on a service truck purchased in July of the current year at a cost of $\backslash (\backslash$$ $18,000\backslash ).$

d$.$ Cash of $\backslash (\backslash$$ $3,600\backslash )$ was collected on November of the current year for services to be rendered evenly over the next year beginning on November $1$ of the current year. Unearned Service Revenue was credited when the cash was received.

e$.$ On November $1$ of the current year, Zimmerman paid a one$-$year premium for property insurance, $\backslash$$$9,240,$ for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount.

f$.$ The company earned service revenue of $\backslash (\backslash$$ $4,200\backslash )$ on a special job that was completed December $29$ of the current year. Collection will be made during January of the next year. No entry has been recorded.

g$.$ At December $31$ of the current year, wages earned by employees totaled $\backslash (\backslash$$ $14,400\backslash ).$ The employees will be paid on the next payroll date in January of the next year.

h$.$ On December $31$ of the current year, the company estimated it owed $\backslash (\backslash$$ $580\backslash )$ for this year's property taxes on land. The tax will be paid when the bill is received in January of next year.

f$.$ The company earned service revenue of $\backslash (\backslash$$ $4,200\backslash )$ on a special job that was completed December $29$ of the current year. Collection will be made during January of the next year. No entry has been recorded.

g$.$ At December $31$ of the current year, wages earned by employees totaled $\backslash (\backslash$$ $14,400\backslash ).$ The employees will be paid on the next payroll date in January of the next year.

h$.$ On December $31$ of the current year, the company estimated it owed $\backslash (\backslash$$ $580\backslash )$ for this year's property taxes on land. The tax will be paid when the bill is received in January of next year.

P$4-4$ Part $2$

$2.$ Indicate the effect of each adjusting entry. $($Reminder: Assets $=$ Liabilities $+$ Stockholders' Equity; Revenues $-$ Expenses $=$ Net Income; and Net Income accounts are closed to Retained Earnings, a part of Stockholders' Equity.$)$ Note: Enter negative amounts with a minus sign. P$4-4$ Part $2$

$2.$ Indicate the effect of each adjusting entry. $($Reminder: Assets $=$ Liabilities $+$ Stockholders' Equity; Revenues $-$ Expenses $=$ Net Income; and Net Income accounts are closed to Retained Earnings, a part of Stockholders' Equity.$)$

Note: Enter negative amounts with a minus sign.