Author Question: Record each event in the accounting equation below. Include both amounts and account titles. ... (Read 63 times)

Mollykgkg · **on:** Jul 5, 2018

Record each event in the accounting equation below. Include both amounts and account titles.

Shareholders' equity
Assets Liabilities CC Retained earnings
1. On November 1, 2011, Lucky Luke, Inc. borrowed 20,000 on a 3-month, 9 notes.
2. On November 30, 3011, it adjusted for the interest owed on the note.

3. Which of the four financial statements are affected by the adjusting entry to accrue interest?
______ Income Statement ______ Statement of Changes in Shareholders' Equity

______ Statement of Cash Flows ______ Balance Sheet

4. Would your answer in 2. be different if the note was a 20,000, 6-month, 9 note instead of a 3-month note?

Question 2

A statement of account issued by a bank to each depositor once a month is known as a(n) ___________________ _.
Fill in the blank(s) with correct word

14vl19 · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

Shareholders' equity
Assets Liabilities CC Retained earnings
1. On November 1, 2011, Lucky Luke, Inc. borrowed 20,000 on a 3-month, 9 notes. 20,000 Cash 20,000 Notes
Payable
2. On November 30, 3011, it adjusted for the interest owed on the note. 150 Interest Payable (150) Interest expense

3.
__X__ Income Statement __X__ Statement of Changes in Shareholders' Equity

_____ Statement of Cash Flows __X__ Balance Sheet

4. There would be no difference.

Answer to Question 2

bank statement