Adjusting Entries-Effect on Elements of Financial Statements

question 90

Essay

Adjusting entries-effect on elements of financial statements
Whoop-It-Up,Inc.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,Inc.for March from the concessionaire operating a juice bar in the facility.The amount due will be remitted to Whoop-It-Up,Inc 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,net income,assets,liabilities,and owner's 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.

---

Definitions:

Social Responsiveness

The capacity of an individual to engage in social interactions by understanding and reciprocating social cues, behaviors, and emotions.

Adopted Children

Children who are legally taken and raised by parents who are not their biological parents, forming a permanent family bond.

Temporary Foster Parents

Individuals or families who provide a temporary home and care for children when their biological parents are unable to do so.

Environmental Stimulation

Environmental stimulation involves the external inputs and interactions that encourage sensory, cognitive, and physical development, affecting learning and growth.