Consider the following situations for a company:
On November the company received a $ payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue was credited on November
On December the company paid a local radio station $ for radio ads that were to be aired, per month, throughout December, January, and February. Prepaid Advertising was debited on December
Employee salaries for the month of December totaling $ will be paid on January
On August the company borrowed $ from a local bank. A note was signed with principal and interest to be paid on August
Required:
Indicate by how much the assets, liabilities, and stockholders' equity in the December balance sheet is higher or lower if the adjusting entry is not recorded.
