Indicate the effects of each of these transactions upon the following elements of the company’s financial statements. Income Statement Balance Sheet Transaction Revenue - Expenses = Net Income Assets = Liabilities + Owner's Equity a 1. Made a year-end adjusting entry to accrue interest on a note payable. 2. A liability classified for several years as long-term becomes due within the next 12 months. 3. Earned an amount previously recorded as unearned revenue. 4. Made arrangements to extend a bank loan due in 60 days for another 18 months

A revenue was earned in 2019 but payment is not received until 2020. Using the accrual basis of accounting, the revenue should appear on:    A. the 2020 income statement  B. the 2019 income statement  C. both the 2019 and 2020 income statements  D. neither the 2019 nor 2020 income statement

The following items appear on the balance sheet of a company with a one-year operating cycle. Identify the proper classification of each item as follows: C if it is a current liability, L if it is a long-term liability, or N if it is not a liability. 1. Interest payable (due in 90 days) Item 2. Unearned revenues (to be earned over next 3 months) 3. Employee Union Dues Payable 4. Pension liability (to be paid to employees retiring in 2 to 5 years) 5. Warranty liability (6 months of coverage) 6. FICA-Social Security Taxes Payable 7. FICA Medicare Taxes Payable 8. Prepaid Insurance (6 months of coverage) 9. Sales taxes payable. 10. Pension liability (to be fully paid to retired employees in next 11 months) Classification

At its December 31 year-end, the company owes $700 of interest on a loan. That interest will not be paid until sometime in January of the next year. Note: Enter debits before credits. Transaction b. Interest expense Interest payable General Journal Debit Credit

The company accrued income taxes at the end of January of $9,000. Record the adjusting entry for income taxes.