Marcus Roberts operates a small retail establishment. The following unadjusted amounts were taken from Roberts' accounting records at December 31, 2015:
Determine the effect on the accounting equation of the adjusting entries at December 31, 2015, for each of the transactions that follow:
A. The advertising costs are for television commercials to be aired equally throughout December, 2015, and January and February, 2016.
B. The machinery had an original cost of $50,000 and was purchased during 2010. The estimated useful life is 6 years with an estimated salvage value equal to $8,000. Roberts uses the straight-line method of depreciation.

Question

Marcus Roberts operates a small retail establishment. The following unadjusted amounts were taken from Roberts' accounting records at December 31, 2015:
  Determine the effect on the accounting equation of the adjusting entries at December 31, 2015, for each of the transactions that follow:
A. The advertising costs are for television commercials to be aired equally throughout December, 2015, and January and February, 2016.
B. The machinery had an original cost of $50,000 and was purchased during 2010. The estimated useful life is 6 years with an estimated salvage value equal to $8,000. Roberts uses the straight-line method of depreciation.

Quizplus · Accepted Answer

The Answer of Marcus Roberts operates a small retail establishment. The following unadjusted amounts were taken from Roberts' accounting records at December 31, 2015:
  Determine the effect on the accounting equation of the adjusting entries at December 31, 2015, for each of the transactions that follow:
A. The advertising costs are for television commercials to be aired equally throughout December, 2015, and January and February, 2016.
B. The machinery had an original cost of $50,000 and was purchased during 2010. The estimated useful life is 6 years with an estimated salvage value equal to $8,000. Roberts uses the straight-line method of depreciation.

Marcus Roberts Operates a Small Retail Establishment