Using the Column Headings Provided Below, Show the Effect, If

question 18

Essay

Using the column headings provided below, show the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the account name, amount, and indicating whether it is an addition (+) or subtraction (-). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting stockholders' equity.
(1.) During the month, the board of directors declared a cash dividend of $1,200, payable next month.
(2.) Employees were paid $1,900 in wages for their work during the first three weeks of the month.
(3.) Employee wages of $600 for the last week of the month have not been recorded.
(4.) Merchandise that cost $900 was sold for $1,350. Of this amount, $1,000 was received in cash and the balance is expected to be received within 30 days.
(5.) A contract was signed with a local radio station for a $100 advertisement; the ad was aired during this month but will not be paid for until next month.
(6.) Store equipment was purchased at a cash price of $300. The original list price of the equipment was $400, but a discount was received.
(7.) Received $180 of interest income for the current month.
(8.) Accrued $310 of interest expense at the end of the month. $$\begin{array} { | c | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Transaction/ } \\\text { Adjustment }\end{array} & \text { Assets } & & \text { Liabilities } & \begin{array} { c } \text { Stockholders' } \\\text { Equity }\end{array} & \text { Net Income } \\\hline 1 . & & & & & \\\hline 2 . & & & & & & \\\hline \text { 3. } & & & & & & \\\hline 4 . & & & & & & \\\hline \text { 5. } & & & & & & \\\hline 6 . & & & & & & \\\hline \text { 8. } & & & & & & \\\hline\end{array}$$

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Definitions:

Hemispheres

Two halves of the brain, each responsible for different functions and controls opposite sides of the body.

Lung

A pair of respiratory organs located in the chest, involved in the process of oxygen exchange and carbon dioxide expulsion from the bloodstream.

Breathe

The process of taking air into and expelling it from the lungs, critical for oxygen exchange and carbon dioxide removal in the body.

Day

A period of 24 hours from midnight to midnight, serving as a basic unit of time universally recognized for organizing daily life and activities.