| The Jamesway Corporation had the following situations on December 2013. |
| 1. |
On December 20, 2013, Jamesway received a $4,100 payment from a customer for services to be rendered early in 2014. Service revenue was credited. |
| 2. |
On December 1, 2013, the company paid a local radio station $2,200 for 40 radio ads that were to be aired, 20 per month, throughout December and January. Prepaid advertising was debited. |
| 3. | Employee salaries for the month of December totaling $17,000 will be paid on January 7, 2014. |
| 4. |
On August 31, 2013, Jamesway borrowed $50,000 from a local bank. A note was signed with principal and 6% interest to be paid on August 31, 2014. |
|
If none of the adjusting journal entries were made, would assets, liabilities, and shareholders’ equity on the 12/31/13 balance sheet be higher or lower and by how much? |
Assets higher by
Liabilities lower by
Shareholders equity higher by