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Question - Prepare the appropriate adjusting entries to be made as of June 30, 20-1. Leave one blank line between entries. Omit explanations.
1. The $50 000 balance in Advertising Expense at June 30, 20-1, represents the amount paid for advertising. Analysis indicates that $7500 of this amount is for radio ads to be aired in July.
2. The $4800 balance in Prepaid Maintenance on June 30, 20-1, represents an advance payment, made September 30, 20-0, for maintenance on computers for one year. This regular maintenance service has been performed for the past nine months.
3. A bill for supplies purchased on June 29, 20-1, for $400 was not received until July 8, 20-1.
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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