Question

Using the data from the previous exercise, complete the following requirements.

Required:
1. Determine the financial statement effects for each of the following:
(a) The adjusting entry required on December 31, 2010,
(b) The January 6, 2011, journal entry for payment of any unpaid wages from December 2010,
(c) The journal entry for the collection of rent on December 10, 2010, and
(d) The adjusting entry on December 31, 2010. Indicate the effects (e.g., cash + or -), using the following schedule:
Date Assets Liabilities Stockholders’ Equity

2. Explain why the accrual method of accounting provides relevant information to financial analysts.



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  • CreatedJuly 27, 2012
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