BE 238
Identify the impact on the statement of financial position if the following information is not used to adjust the accounts.
1.Supplies consumed totaled ¥3,000.
2.Interest accrues on notes payable at the rate of ¥200 per month.
3.Insurance of ¥450 expired during the month.
4.Plant and equipment are depreciated at the rate of ¥1,200 per month.
BE 239
Determine the impact on the statement of financial position accounts if the following information is not used to adjust the accounts of Fortress Company for the month of January, 2014. Round answers to the nearest dollar.
1.The company rents extra office space to B & J, CPAs. B & J pays the $24,000 rent annually on January 1.
2.The company has an outstanding loan to its President in the amount of $120,000. The loan accrues interest at the annual rate of 6%. Principal and interest are due January 1, 2017.
3.The company completed work on a project during January that was not yet billed to the client. The client will be charged $2,500.
BE 240
For each of the following oversights, state whether total assets will be understated (U), overstated (O), or no affect (NA).
_____ 1.Failure to record revenue earned but not yet received.
_____ 2.Failure to record expired prepaid rent.
_____ 3.Failure to record accrued interest on the bank savings account.
_____ 4.Failure to record depreciation.
_____ 5.Failure to record accrued wages.
_____ 6.Failure to recognize the earned portion of unearned revenues.
BE 241
Ramona’s Music School borrowed $30,000 from the bank signing a 6%, 6-month note on November 1. Principal and interest are payable to the bank on May 1. If the company prepares monthly financial statements, what adjusting entry should the company make at November 30 with regard to the note (round answer to the nearest dollar)?