The Unadjusted Trial Balance and the Adjustment Data for Harris

question 135

Essay

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:

Symptom Management

The practice of implementing strategies or treatments to alleviate or reduce the severity of symptoms caused by an illness or condition.

Medication Education

The process of teaching individuals about the proper use, effects, and management of their medications.

Cognitive Strategy

Techniques or methods employed to improve mental processes and enhance learning or problem-solving abilities.

Being Autonomous

The ability to make one's own decisions independently, without undue influence from others.