KEEP CALM AND SA1 - 4NA

PREPAID rent expense =

• current ASSET

• currrent LIABILITY

Service fee revenue RECEIVED IN ADVANCE =

• current ASSET

• current LIABILITY

Adjustment for income receivable = income

• INCREASE

• DECREASE

Adjustment for expenses PAYABLE = expense

• INCREASE

• DECREASE

LOSS for the year = Capital

• INCREASE

• DECREASE

Bank CHARGES = cash at bank

• INCREASE

• DECREASE

Sales to Andi was recorded in Andee account. To correct:

• DR Andi CR Andee

• DR Andee CR Andi

Motor expenses paid of $99 recorded as $90. To correct:

• DR motor expenses 9

  CR cash at bank 9

• DR cash at bank 9

  CR motor expenses 9

Expenses OVERstated = Profit

• OVERstated

• UNDERstated

Assets OVERstated = Profit

• OVERstated

• UNDERstated

• No effect