South Seas Fisheries had the following additional information at its November 30, 2014, year-end: a. The Unearned

Question:

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:

South Seas Fisheries had the following additional information at its

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.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...