The Unadjusted Trial Balance and the Adjustment Data for Porter

question 195

Essay

The unadjusted trial balance and the adjustment data for Porter Business Institute are shown below along with adjusting entry information.What is the impact of the adjusting entries on the balance sheet? Show the calculation for total assets,total liabilities,and equity without the adjustments; show the calculation for total assets,total liabilities,and equity with the adjustments.Which one provides the most accurate presentation of the balance sheet?

Additional information items:
a.The Prepaid Insurance account consists of a payment for a 1 year policy.An analysis of the insurance invoice indicates that one half of the policy has expired by the end of the December 31 year-end.
b.A cash payment for space sublet for 8 months was received on July 1 and was credited to Unearned Rent.
c.Accrued interest expense on the note payable of $1,000 has been incurred but not paid.

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Definitions:

Two-Independent Sample T-Test

A statistical test used to compare the means of two independent groups to determine if there is a statistically significant difference between them.

Wilcoxon Signed Rank Test

The Wilcoxon signed rank test is a nonparametric statistical test used to compare the median of two related samples to determine if there are significant differences between them.

P-Value

The probability of observing a test statistic as extreme as, or more extreme than, the observed value under the assumption that the null hypothesis is true.

Kruskal-Wallis Test

A nonparametric statistical test that assesses whether there are statistically significant differences between two or more groups of an independent variable on a continuous or ordinal dependent variable.