Question: South Seas Fisheries had the following additional information at its

South Seas Fisheries had the following additional information at its November 30, 2014, year-end:
a. The Unearned Revenue account showed a balance of $62,000, which represented four months of services paid in advance by a client for services beginning on October 15, 2014.
b. The payroll register showed the following unpaid amounts as at November 30:


c. The November utility bill in the amount of $2,160 was unpaid and unrecorded at November 30.

Required
Prepare the appropriate entries at year-end based on the above information.

Analysis Component: If the above entries are not recorded on November 30, 2014, what is the effect on the income statement and the balance sheet? Identify which GAAP would beviolated.


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  • CreatedJanuary 08, 2015
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