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Effects of each transactions on the balance sheet equation

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Show the effect, if any, of each of the transactions on the appropriate balance sheet category by entering the amount and indicating whether it is an addition or subtraction

A. Wages of $768 accrued at the end of the prior fiscal period were paid this fiscal period

B. Real estate taxes of $2400 applicable to the current period have not been accrued

C. Interest on bonds payable hasn't been accrued for the current month. The company has outstanding $360,000 of 7.5% bonds

D. The premium related to the bonds in part C has not been amortized for the current month. The current month amortization is $70

E. Based on past experience with its warranty program, the estimated warranty expense for the current period should be .2% of sales of $918,000

F. Analysis of the company's income taxes indicates that taxes currently payable are $76,000 and that the deferred tax liability should be increased by $21,000

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Solution Summary

The response puts each transaction into excel in the "accounting equation" format, distinguishing between short-term and long-term.

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