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X Company, a merchandiser, prepares monthly financial statements. On June 30, its accountant made adjusting entries to record:
- $5,670 of June interest on a bank loan to be paid in July
- $1,998 of wages that were earned by employees in June but to be paid in July
- $4,725 of rent and insurance for June that was prepaid on June 1 but had expired
- $3,863 of depreciation on factory equipment
- a $2,871 June utility bill received in June, to be paid in July
- a shipment of products in June for which customers paid $1,120 in May
6. What would be the effect of these entries on total assets in June?
7. What would be the effect of these entries on total liabilities in June?
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