The Unadjusted Trial Balance and the Adjustment Data for Harris

question 174

Essay

The unadjusted trial balance and the adjustment data for Harris Training Institute are given below along with adjusting entry information.If these adjustments are not recorded,what is the impact on net income?
Show calculation for net income without the adjustments and net income with the adjustments.Which one gives the most accurate net income?
What accounting principles are being violated if the adjustments are not made?
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.

Discuss the impact of cultural and environmental factors on intelligence and tests' fairness.

Understand the basic principles and dynamics involved in the movement and storage of groundwater within aquifers.

Identify the causes and effects of overpumping groundwater from aquifers.

Describe the characteristics and formation processes of karst topography.

---

Definitions:

Revolving-Credit Agreement

A financial agreement permitting a business or person to lend, pay back, and re-lend funds up to an approved borrowing limit.

Commitment Fee

A fee paid by a borrower to a lender to keep a line of credit open or to guarantee a loan's terms.

Contractual Agreement

A contractual agreement is a legally binding exchange of promises or an agreement between parties that is enforceable by law.

Accruals

Accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash transaction happens.