Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 19

Sweeney Allen, a large marketing firm, adjusts its accounts at the end of each month.he following information is available for the year ending December 31, 2015:
1. bank loan had been obtained on December 1.ccrued interest on the loan at December 31 amounts to $1,500.o interest expense has yet been recorded.
2.epreciation of the firm's office building is based on an estimated life of 30 years.he building was purchased in 2011 for $450,000.
3.ccrued, but unbilled, revenue during December amounts to $75,000.
4.n March 1, the firm paid $2,400 to renew a 12-month insurance policy.he entire amount was recorded as Prepaid Insurance.
5.he firm received $15,000 from King Biscuit Company in advance of developing a six-month marketing campaign.he entire amount was initially recorded as Unearned Revenue.t December 31, $9,000 had actually been earned by the firm.
6.he company's policy is to pay its employees every Friday.ince December 31 fell on a Wednesday, there was an accrued liability for salaries amounting to $1,900.
a.ecord the necessary adjusting journal entries on December 31, 2015.
b.y how much did Sweeney Allen's net income increase or decrease as a result of the adjusting entries performed in part a (Ignore income taxes.)