Name Student ID Date Final Exam Review Demonstration Activity 1 Unearned Revenue Parlow Gumble receives 24 000 from a customer on March 1 Year 1 to perform 12 months of service work beginning immediately Record all needed transactions related to this event in a horizontal financial statement model Parlow Gumble Horizontal Financial Statements Model Years 1 2 Assets Cash Liabilities Unearned Revenue Stk Equity Retained Earnings Income Statement Rev Exp Net Income Parlow Gumble borrows 100 000 from the bank on January 1 Year 1 at 5 interest The note will be repaid in two equal payments of 53 780 each December 31 Record all needed transactions related to this event in a horizontal financial statement model round to nearest dollar Parlow Gumble Horizontal Financial Statements Model Years 1 2 Assets Cash Liabilities Notes Payable Stk Equity Retained Earnings Income Statement Interest Exp Net Income Rev Event 1 Cash received 2 Adj 12 31 Y1 3 Adj 02 28 Y2 2 Installment Note Payable Event 1 Borrowing 2 Pmt 1 12 31 Y1 3 Pmt 2 12 31 Y2 3 Bonds Payable Parlow Gumble issues 200 000 of 6 bonds at face value on January 1 Year 1 The bonds pay interest each December 31 The bonds must be repaid on January 1 Year 3 Record all needed transactions related to this event in a horizontal financial statement model round to nearest dollar Parlow Gumble Horizontal Financial Statements Model Years 1 2 Assets Cash Liabilities Bonds Payable Stk Equity Retained Earnings Income Statement Interest Exp Net Income Rev Event 1 Bond issue 2 Pmt 1 12 31 Y1 3 Pmt 2 12 31 Y2 4 Repay bonds 01 01 Y3 Name Student ID Date Final Exam Review Group Activity 1 Unearned Revenue Parlow Gumble receives 24 000 from a customer on June 1 Year 10 to perform 12 months of service work beginning immediately Record all needed journal entries related to this event Parlow Gumble General Journal Years 10 11 Debit Account Titles Credit 2 Installment Note Payable Parlow Gumble borrows 100 000 from the bank on January 1 Year 10 at 8 interest The note will be repaid in two equal payments of 56 077 each December 31 Record all needed journal entries related to this event round to nearest dollar Parlow Gumble General Journal Years 10 11 Debit Account Titles Credit Date 06 01 10 12 31 10 05 31 11 Date 01 01 10 12 31 10 12 31 11 3 Bonds Payable Parlow Gumble issues 800 000 of 8 bonds at face value on January 1 Year 10 The bonds pay interest each December 31 The bonds must be repaid on January 1 Year 12 Record all needed journal entries related to this event round to nearest dollar Parlow Gumble General Journal Years 10 11 and 12 Account Titles Debit Credit Date 01 01 10 12 31 10 12 31 11 01 01 12