11.Total assets, liabilities, and shareholders' equity are $15,000, $6,000, and $9,000 before a $2,000 note payable is paid. Determine the new amounts of assets, liabilities, and shareholders' equity after this event?
12.Houston Times Publishing Inc. sells two-year magazine subscriptions. Cash receipts from subscribers are credited to Unearned Subscriptions. On December 31, 2010, immediately before the company made adjusting entries, the Unearned Subscriptions account had a balance of $8,000. Outstanding subscriptions relating to magazines that have not been delivered as of December 31, 2010, will be mailed to customers as follows:
During 2011$3,800
During 2012 2,200
At December 31, 2010, what amount should Houston Times Publishing Inc. report as the balance for Unearned Subscriptions? Where should this amount be reported?
13.Total assets, liabilities, and shareholders' equity are $22,000, $5,000, and $17,000 before land costing $10,000 is purchased in exchange for a $1,000 note payable and $9,000 cash. During the year, the company earned $50,000 of revenues of which only $45,000 was collected. Expenses totaling $44,000 were incurred, but $2,000 of this had not been paid by the end of the year. Show the amounts that would be reported on the accounting equation as a result of these transactions.
14.Marian Company collected $8,000 cash in advance during March for services to be performed in April and May. At the end of April an adjusting entry was made to debit Unearned Revenue and credit Service Revenue for $4,200. The ending balance in the Unearned Revenue account was $3,800.
What entry was made during March when the original $8,000 was collected?
How much will Marian report on its balance sheet as a liability at the end of April as a result of the transactions?
15.On October 1, 2010, Edinboro Company rented a building from another company for $90,000 for a two-year time period. Edinboro Company debited the rent expense account on October 1 when the payment was made. What adjustment for rent is necessary at December 31, 2010?