The Unadjusted Trial Balance and the Adjustment Data for Harris

question 35

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The unadjusted trial balance and the adjustment data for Harris Training Institute are given below along with adjusting entry information. What is the impact of the adjusting entries on the balance sheet? Show calculation for total assets, total liabilities, and owner's equity without the adjustments; show calculation for total assets, total liabilities, and owner's equity with the adjustments. Which one gives 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:

Seven Years' War

A global conflict that took place between 1756 and 1763, involving most of the great powers of the time and affecting Europe, North America, Central America, the West African coast, India, and the Philippines.

Iroquois

A historically powerful and influential group of Native American tribes forming the Iroquois Confederacy, primarily located in the northeastern United States.

Fort Necessity

Fort Necessity was a small stockade built by British colonial forces in 1754 in what is now Farmington, Pennsylvania, playing a key role in the early stages of the French and Indian War.

Plan of Union

A proposal made by Benjamin Franklin at the Albany Congress in 1754 for the creation of a unified government for the Thirteen Colonies, which was not implemented but laid groundwork for future unity.