Charles Bloom is the owner and manager of Piermont Travel. On the 15th May 2022 the...

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Charles Bloom is the owner and manager of Piermont Travel. On the 15th May 2022 the business received $8,500 from customers for a tour to New York departing on the 8th July 2022. (3 marks) i) Prepare the journal entry on the 15th May to record the above transaction if Piermont Travel uses the cash basis of accounting system. ii) Would you prepare the same journal entry on the 15th May if Piermont Travel used the accrual basis of accounting system? If not, how would the journal entry prepared in part (i) change? b) The purpose of financial reporting is to provide accounting information that is useful for decision making by external users. For accounting information to be useful it must have certain qualitative characteristics. Describe two enhancing qualitative characteristics of accounting information. (3 marks) a) b) Date BUI Account Name Debit F !!! Credit III 20 2? A O Charles Bloom is the owner and manager of Piermont Travel. On the 15th May 2022 the business received $8,500 from customers for a tour to New York departing on the 8th July 2022. (3 marks) i) Prepare the journal entry on the 15th May to record the above transaction if Piermont Travel uses the cash basis of accounting system. ii) Would you prepare the same journal entry on the 15th May if Piermont Travel used the accrual basis of accounting system? If not, how would the journal entry prepared in part (i) change? b) The purpose of financial reporting is to provide accounting information that is useful for decision making by external users. For accounting information to be useful it must have certain qualitative characteristics. Describe two enhancing qualitative characteristics of accounting information. (3 marks) a) b) Date BUI Account Name Debit F !!! Credit III 20 2? A O

Answer rating: 100% (QA)

A i Cash Basis Date Account Name Debit Credit 15 th May 2022 Cash 8500 Tour Revenue 8500 This entry ... View the full answer