CHAPTER 3 KWW (14E)
Every journal entry affects one or more of the following items: assets, liabilities, stockholders
equity, revenues, expenses, or dividends.
1. October 1: Stockholders invest $100,000 cash in an advertising venture to be known as
CHAPTER 3 ADJUSTING ENTRIES
You purchase a 3 year life insurance policy for $3,600 on
May 1, 2010. What is the adjusting entry at December
31, 2010 and 2011 if the original entry was:
a) charged to an asset account?
VALUATION OF NOTES CHAPTER 7
Notes have a single-sum component and an annuity
component. The face value (or maturity value)
represents the single-sum component. The interest
payment stream represents the annuity.
1. For example, assume your client gave yo