Adjusting Entries-Effect on Elements of Financial Statements $\quad$ $\quad$

question 72

Essay

Adjusting entries-effect on elements of financial statements.
Whoop-It-Up Limited prepares monthly financial statements. On March 31, the company's accountant made adjusting entries to record:
(A) Depreciation for the month of March.
(B) Amount owed to Whoop-It-Up, Limited for March from the concessionaire operating a juice bar in the facility. The amount due will be remitted to Whoop-It-Up, Limited during the first week in April.
(C) Cost of supplies used in March. (When purchased, the cost of supplies is debited to an asset account.)
(D) Earning of a portion of annual membership fees which had been collected in advance. (When customers purchase annual memberships, an Unearned Revenue account is credited.)
(E) Accrued interest for March owed on a bank loan obtained March 1. No interest expense has yet been recorded.
Indicate the effect of each of these adjusting entries on the major elements of the company's financial statements-that is, on revenue, expenses, profit, assets, liabilities, and equity. Organize your answer in tabular form, using the column headings shown below and the symbols + for increase, - for decrease, and NE for no effect.
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Income Statement }$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Balance Sheet }$
$\begin{array} { | c | l | l | l | l | l | l | } \hline \text { Adjusting } & \text { Revenue } & \text { Eanenses } & \text { Profit } & \text { Assets } & \text { Iabilities } & \text { Eqquity } \\\hline \text { Entry } & & & & & & \\\hline \text { (a.) } & & & & & & \\\hline \text { (b.) } & & & & & & \\\hline \text { (c.) } & & & & & & \\\hline \text { (d.) } & & & & & & \\\hline \text { (e.) } & & & & & & \\\hline & & & & & & \\\hline\end{array}$

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Definitions:

Foreign Trade

The exchange of goods, services, and capital between countries and territories, influencing the global economy.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a given period.

Trade Adjustment Assistance

A federal program offering aid to workers who lose their jobs or whose hours and wages are reduced due to the impact of international trade.

Subsidies

Financial support provided by the government to businesses, individuals, or other governmental bodies, intended to encourage production, reduce prices, or support activities deemed beneficial.