Question:
The Roussel Company prepares its
financial statements for the period ending on 31 December X1.
Required
In the following table, you will find a list of events or transactions. Indicate, by a checkmark, to which category of adjusting entries each event is related.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Transcribed Image Text:
Closing date is 31 December EVENT Revenues recorded but consumed butrecorded but earmedbut not not consumednot recorded unearned Roussel Company owns office space far rent to other companies. On 1 September X1, Roussel rented some office space and was paid rent for six months uptont. At that time, the entire amount was recordod to Increase rent revenue. On 1 Apri X1, Roussel Company received from its bank a ban to be repaid in March X2 Interest is charged at the rate of 5% and will be payable on the due date of theloan On 1 December X1, Roussel Company paid upfront and in ful a one-year subscripton fee to a soltware hep-ine. At the time of payment, a maintenance expense was recognized for the ful amount of the payment. The mnutes of the last board meeting in X1 recorded the board of directors' decison to give mariagers and employees year-end bonuses. The formula for the calcuation of the bonus on the basis of the X1 profit was agreed upon at that meeting The bonus has not been out before the end of the year Roussal Company has delvered some merchandise in late Decamber X1 to a customer. The sales department has not had tme to esue the nvoice belore the end of X1 The invoioe s printed and sent to the customer on 15 January X2. Roussel Company received some advice from its lawyer durng the manth of December X1 The lawyer will send her invoioe in February X2.