3. na Adjustments Explain and provide examples of year-end adjustments. Include in your instructions the...
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3. na Adjustments Explain and provide examples of year-end adjustments. Include in your instructions the following example. What is the year-end adjustment accomplishing? Why is it necessary? What would the income statement impact be if the adjustment was not made? What is the balance sheet impact if the adjustment is not made? Include an explanation for the interest expense calculation. Date Description June 1, 2022 Airflowing Corp. purchased a truck for $ 85,000 from Ford Motor Company Fleet Sales Division. The sales agreement call for Airflowing Corp. to pay $ 10,000 on purchase date and to sign a 1-year, 10% note for the remaining balance of the purchase price. Debit Credit 16/1/22 Truck $ 85,000 Notes payable $ 75,000 $ 10,000 Cash $ $ 4,375 12/31/22 Interest expense Year-end adjustment Interest payable $ 4,375
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