The accounts for DX Company are listed below, identified by number. Following the list of accounts is a series of adjustments prepared by DX Company. For each adjustment, enter the number(s) of the account(s) under the respective section of the accounting equation and show the effects on the accounting equation by placing ( ) parentheses around the account number if the adjustment decreases the accounting equation element.  NOTE:  Since there are no account titles for net income (it is a subtotal), the net income column has been intentionally omitted.  Show the correct effect in the Stockholders’ Equity column so the Balances Sheet balances.

 

 

1.	Cash	11.	Capital Stock
2.	Accounts Receivable	12.	Retained Earnings
3.	Prepaid Rent	13.	Interest Revenue
4.	Office Supplies	14.	Service Revenue
5.	Automobiles	15.	Office Supplies Expense
6.	Accumulated Depreciation	16.	Rent Expense
7.	Accounts Payable	17.	Salaries and Wages Expense
8.	Unearned Service Revenue	18.	Depreciation Expense
9.	Interest Payable	19.	Interest Expense
10.	Income Tax Payable	20.	Income Tax Expense

 

		BALANCE SHEET			INCOME STATEMENT
Adjustments		Assets	= Liabilities	+ Stockholders’ Equity	Revenues	Expenses
a.	Recognized depreciation expense for the current month for $7,000.
b.	Recognized services earned for $12,000, payments received the previous month
c.	Recognized expiration of prepaid rent during the month $14,000.
d.	Recorded monthly income tax expense $10,000.
e.	Provided consulting services to clients that will pay next month for $15,000.
f.	Accrued interest on loan payable to be paid next month $3,000.