Question: On November 1 an exterior painting company received 5 310

On November 1, an exterior painting company received $ 5,310 for a paint job that will not be finished for a few months. As of December 31, which is the end of the fiscal period, $ 2,400 worth of painting will not have been completed. The bookkeeper completed the following entries prior to leaving on vacation:

The owner wants to get a bank loan by December 1. The bank requires interim financial statements to be submitted as of December 1. How will the bookkeeper’s entries affect the accuracy of the interim balance sheet and income statements? What difference will the bookkeeper’s methods make in the December 31 balance sheet and incomestatement?
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  • CreatedOctober 21, 2014
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