The Records of Adam's Apple,Inc

question 25

Essay

The records of Adam's Apple,Inc.revealed the following amounts at December 31,2011 before adjustments:
Part A: In the worksheet below,record the effect of these six adjustments on the accounting equation.Show the correct dollar amounts,and write in the titles of the accounts affected.
a.$400 of the advertising paid in advance remained unused.
b.The equipment,purchased on January 1,has a useful life of 5 years with no residual value.Record the depreciation for the year.
c.Four months of the 12-month insurance policy have NOT expired.
d.Interest is owed on the 6%,9-month note issued on November 1,2011.
e.$6,000 was earned of the amounts collected in advance from customers.
f.$4,000 was owed to employees for work done in December.
Part B: Fill in the adjusted balances as of December 31,2011:
Part C: Calculate Adam's Apple's net income for the year ended December 31,2011.$________

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Definitions:

Aerobic Respiration

A metabolic process in which cells use oxygen to break down glucose and other molecules, producing carbon dioxide, water, and energy in the form of ATP.

Selective Advantage

A genetic or behavioral characteristic that improves an organism's ability to survive and reproduce in its environment.

Oxygen

A chemical element with symbol O and atomic number 8, essential for aerobic respiration in living organisms and a component of the Earth's atmosphere.

Multicellular Eukaryote

An organism made up of multiple cells that have a nucleus and organelles, including animals, plants, and fungi.