Selected amounts at December 31, 2003, from the Hay and Barnabas Company’s information system appear as follows:
You are to complete each of the following tasks.
Part A
There are five adjustments that need to be made before the financial statements can be prepared at year end. Show the effect of each of the following (a – e) on the accounting equation.
Part B
Indicate the proper balance sheet classification of each of the preceding 12 financial statement items on the December 31, 2003, balance sheet. If the account title would not appear on the balance sheet, indicate the financial statement on which it would be found.
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