Question: Canadian Company has completed its accounting information processing cycle for the year ended December 31, 2017. Reversing entries are under consideration on January 1, 2018,

Canadian Company has completed its accounting information processing cycle for the year ended December 31, 2017. Reversing entries are under consideration on January 1, 2018, for two different adjusting entries made on December 31, 2017. For case purposes, the relevant data are given in T-accounts:

Required

Would a reversing entry on January 1, 2018, facilitate the next related entry for

(a) Prepaid insurance

(b) Accrued wages payable? Explain why.

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