Question: Able Company received 4 800 from a customer on April 1
Able Company received $4,800 from a customer on April 1 for services to be provided in the coming year in an equal amount for each of the 12 months beginning April. In the Able information system, these cash receipts are recorded as unearned revenue. What adjustment will Able need to make when preparing the December 31 financial statements? What is the impact on the financial statements if the necessary adjustment is not made? Is this adjustment related to an accrual or a deferral?
Answer to relevant QuestionsFrom the following list of accounts (1) identify the assets or liabilities that commonly require an adjustment at the end of the accounting period, and (2) indicate whether the adjustment relates to a deferral or an ...Petgirl Company earned $25,000 of revenues and incurred $12,950 worth of expenses during the period. Petgirl also declared and paid dividends of $1,500 to its shareholders. What was net income for the period? Assuming this ...Suppose a company had the following accounts and balances at year end:Sales revenue .......... $5,400Interest revenue ......... $1,200Rent expense .......... $1,240Other operating expenses ...... $3,050Dividends paid ...Wizard’s Corporation, a newly developed internet game company, received $1,050,000 for 2,000 three-year subscriptions to a new online game priced at $175 per year. The subscriptions do not start until November of 2009. ...Analyze the following accounting equation worksheet for Starwood Yacht Repair Corporation and explain the transaction or event that resulted in eachentry.
Post your question