If no adjusting entries, assets, liab, equity be higher or lower?
1.
On December 20, 2013, Jamesway received a $4,000 payment from a customer for services to be rendered early in 2014. Service revenue was credited.
2.
On December 1, 2013, the company paid a local radio station $2,000 for 40 radio ads that were to be aired, 20 per month, throughout December and January. Prepaid advertising was debited.
3. Employee salaries for the month of December totaling $16,000 will be paid on January 7, 2014.
4.
On August 31, 2013, Jamesway borrowed $60,000 from a local bank. A note was signed with principal and 8% interest to be paid on August 31, 2014.
If none of the adjusting journal entries were made, would assets, liabilities, and shareholders’equity on the 12/31/13 balance sheet be higher or lower and by how much?
Please, please... anyone check my answer if it's right!!
Assets higher by $1000
Liab lower by $ 21600
Equity higher by $4000