Reference no: EM132736753

X Company, a merchandiser, prepares monthly financial statements.

On June 30, its accountant made adjusting entries to record:

1. $5,864 of June interest on a bank loan to be paid in July
2. $1,798 of wages that were earned by employees in June but to be paid in July
3. $4,600 of rent and insurance for June that was prepaid on June 1 but had expired
4. $3,733 of depreciation on factory equipment
5. a $2,674 June utility bill received in June, to be paid in July
6. a shipment of products in June for which customers paid $1,150 in May

Problem 1: What would be the effect of these entries on total assets in June?

A: $-8,333

B: $-12,083

C: $-17,520

D: $-25,404

E: $-36,836

F: $-53,412 Tries 0/99

Problem 2: What would be the effect of these entries on total liabilities in June?

A: $4,703

B: $5,879

C: $7,349

D: $9,186

E: $11,482

F: $14,353