how do these events affect net income? why higher or lower and what is the...
70.2K
Verified Solution
Link Copied!
Question
Accounting
how do these events affect net income? why higher or lower and what is the amount? thanks 
A company has a fiscal year-end of December 31 ; (1) on October 1,$25,000 was paid for a one-year fire insurance policy: (2) on June 30 the company loaned its chief financial officer $23,000; principal and interest at 5% on the note are due in one year; and (3) equipment costing $73,000 was purchased at the beginning of the year for cash. Depreciation on the equipment is $14,600 per year. If the adjusting entries were not recorded, would net income be higher or lower and by how much? Note: Decreases to account classifications should be entered as a negative
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.