ABC company maintains its records cash basis of accounting during the year and then converts them...

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ABC company maintains its records cash basis of accounting during the year and then converts them to accrual basis at the end of the year through adjusting entries. While preparing the financial statements of ACC for the year ended December 31, 2019 on accrual basis, you discover the following: a. ABC Company sublet a portion of its warehouse for a one-year period for an annual rental payment of $72,000, beginning on August 1, 2019. The tenant, XYZ company. paid the entire year's rent in advance, on August 1, 2019, which ABC recorded as a credit to Rent Revenue. i. b. ABC Company paid $24,000 on May 1, 2019 for a two-year insurance policy and recorded the entire amount as Insurance Expense. Required Prepare the adjusting entries (if any) related to parts a and b. (6 points) ii. The cash basis net income reported for 2019 is $180,000. Determine the accrual basis met income for 2019. (3 points) ABC company maintains its records cash basis of accounting during the year and then converts them to accrual basis at the end of the year through adjusting entries. While preparing the financial statements of ACC for the year ended December 31, 2019 on accrual basis, you discover the following: a. ABC Company sublet a portion of its warehouse for a one-year period for an annual rental payment of $72,000, beginning on August 1, 2019. The tenant, XYZ company. paid the entire year's rent in advance, on August 1, 2019, which ABC recorded as a credit to Rent Revenue. i. b. ABC Company paid $24,000 on May 1, 2019 for a two-year insurance policy and recorded the entire amount as Insurance Expense. Required Prepare the adjusting entries (if any) related to parts a and b. (6 points) ii. The cash basis net income reported for 2019 is $180,000. Determine the accrual basis met income for 2019. (3 points)

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i To adjust the financial statements from cash basis to accrual basis we need to make the necessary ... View the full answer