The Voldomort Company was about to submit their financial statements for 888 to the auditor when Ron Weasley, junior accountant ran into the office of Harry Potter, CEO, screaming "we haven't incorporated these items into our records"

1.) We have just received our MLGW (Muggle, Light, Gas and Wands) bill for the month of December it was $666 Like most companies, Voldomort records their charge from MLGW when they get the bill; hence they did not show any charge for December

2) On November 1st 888, Voldomort purchased a 1 year fire insurance policy for $1200. The policy began November 1st 888.

Voldomort made the following entry:

Dr Insurance Expense 1200

Cr Cash 1200

3) Voldemort pays its employees on Friday for that week's work. January 1st 889 was a Thursday. The weekly payroll for Voldomort (5 day week; Monday to Friday) is $4500

4) On October 1st 888 Voldemort purchased a 3 month $10,000 12% CD from Hermione Bank and Trust Principle and interest will be paid January 1st 889. Voldemort made no journal entry regarding this note except to record the purchase of the note on October 1st.

5) On December 15th 888, Voldemort signed a contract with the Snape Company to provide security services for Snape's Valentine's party (February 14th, 889)

Snape will pay Voldemort $5000 on February 1st for this security. 

Voldomort did not record this event in its 888 financial statements

The statements Harry was going to give to the auditors (before Ron ran in) showed the following:

Fill out the blank

Asset ________

Liabilities ___________

Equity ____________

Revenue ______________

Expense ________________

Data presented _________

Asset Liabilities Equity Revenue Expense _______________

1. 31,000 

2. 18,000 

3. 13,000

4.  7,000

5.  4500

total correct amount ________ .

Answer rating: 100% (QA)

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