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Question 1: Prepare the following adjusting entries in proper form for August 2019. If there is no entry needed, please write NO ENTRY.
a. Depreciation on office equipment is $350.00 for the month of August. Record the depreciation.
b. Prepaid rent had a balance of $8,000 at the end of July. Twenty-five percent of this was used in August. Record the rent that expired/ was used in August..
c. Fees of $70,000 were received in advance on August 1st. At the end of August, 60% were still unearned. Record what was earned in August.
d. Payroll for the five-day work week, that is paid every Friday is $15,000. August 31st, (last day of the month) is a Thursday. Record the the balance of August that has not been paid.
e. The company ordered new office furniture on August 15th from Office Depot that will cost $2,530. It has not been delivered.
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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