Refer to the chapter’s opening feature about Tony Lee and his Ring Masters company. 

Required

1. At the end of each reporting period, Tony Lee makes adjusting journal entries. Give examples of each of these types of adjusting journal entries that Tony Lee might make at his steel rings factory.

a. Accrued revenues

b. Accrued expenses

c. Unearned revenues

d. Prepaid expenses 

2. Tony Lee hopes to double his sales from the current $3 million annually within five years. Assume that Lee’s sales growth is as follows.

Compute Lee’s projected sales for each year (round to nearest dollar). If this pattern of sales growth holds, will Lee achieve his goal of doubling sales in five years?

Transcribed Image Text:

One Year Hence Two Years Hence Three Years Hence Four Years Hence Five Years Hence Year Growth In Sales........ 0% 20% 15% 25% 20%