For the following situations, indicate whether each involves a deferred expense (DE), a deferred revenue (DR), an
Question:
Example: __DE__ Office supplies purchased in advance of their use
___________ 1. Wages earned by employees but not yet paid
___________ 2. Cash collected from subscriptions in advance of publishing a magazine
___________ 3. Interest earned on a customer loan for which principal and interest have not yet been collected
___________ 4. One year’s premium on life insurance policy paid in advance
___________ 5. Office building purchased for cash
___________ 6. Rent collected in advance from a tenant
___________ 7. State income taxes owed at the end of the year
___________ 8. Rent owed by a tenant but not yet collected
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Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
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