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Indicate the effects that each of the 5 adjusting journal entries will have upon each of the following six sections of the Sunset Vineyards' financial statements.
a. Sunset Vineyards delivered $60,000 of wine in September to customers who paid in August.
b. During September Sunset Vineyards used $12,000 worth of glass bottles from its inventory of supplies.
c. Sunset Vineyards owes $8,000 in wages to its employees at the end of September. Because Sunset pays employees bi-weekly, these wages will not be paid until the first week in October.
d. Sunset Vineyards shipped $125,000 of wine to its wholesale customers in September. These customers are billed and pay those bills in October.
e. Sunset Vineyards has a balance of pre-paid insurance of $12,000 at the beginning of September. $4,000 of that insurance was used in September.
Use the letters to fill in each empty block on the table:
I for Increase; D for Decrease; NE for No Effect
Income Statement
Balance Sheet
Transaction
Revenue - Expenses = Net Income
Assets = Liabilities + Owners Equity
a.
b.
c.
d.
e.
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