Reference no: EM132884275
Question - Consider the following situations for Shocker:
a. On November 28, 2018, Shocker receives a $3,000 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited.
b. On December 1, 2018, the company pays a local radio station $2,400 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited.
c. Employee salaries for the month of December totaling $7,000 will be paid on January 7, 2016.
d. On August 31, 2018, Shocker borrows $60,000 from a local bank. A note is signed with principal and 8% interest to be paid on August 31, 2019.
Required - Indicate by how much the assets, liabilities, and stockholders' equity in the December 31, 2018, balance sheet is higher or lower if the adjustment is not recorded. Higher or Lower next to each.
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Indicate by how much the assets
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