On 4/10/17 I posted a question for accounting. I was able tolocate informatin for the first question not the second. I believethat I have the correct information I just like to cross referenceit. I have no faith in myself with accounting.
Thanks
Tremor Co had the following transactions in the last two monthsof its fiscal year ended May 31
Apr 1 Paid 2,450 cash to an accounting firm for futureconsulting services.
Apr 1 Paid 3,600 cash for 12 months of insurance through March31 of the next year
Apr 30 Received 8,500 cash for furture services to be providedto a customer
May 1 Paid 4,450 cash for future newspaper advertising
May 23 Received 10,450 cash for future services to be providedto a customer
May 31 Of the consulting services paid for on April 1, $2,000worth has been performed
May 31 A portion of the insurance paid for on April 1 hasexpired. No adjustment was made in April to Prepaid Insurance
May 31 Services worth 4,600 are not yet provided to the customerwho paid on April 30
May 31 Of the advertising paid for on May 31 2,050 worth is notyet used
May 31 The company has performed 5,500 of services that thecustomer paid for on May 23
1) Prepare entries for these transactions under the method thatrecords prepaid expenses and unearned revenues in the balance sheetaccounts. Also prepare adjusting entries at the end of theyear.
2) Prepare entries for these transactions under the method thatrecords prepaid expenses and unearned revenues in income statementaccounts. Also prepare adjusting entries at the end of theyear.
3) Explain why the alternative sets of entries in parts 1 and 2do not result in different financial statement amounts
On 4/10/17 I posted a question for accounting. I was able tolocate informatin for the first question not the second. I believethat I have the correct information I just like to cross referenceit. I have no faith in myself with accounting.
Thanks
Tremor Co had the following transactions in the last two monthsof its fiscal year ended May 31
Apr 1 Paid 2,450 cash to an accounting firm for futureconsulting services.
Apr 1 Paid 3,600 cash for 12 months of insurance through March31 of the next year
Apr 30 Received 8,500 cash for furture services to be providedto a customer
May 1 Paid 4,450 cash for future newspaper advertising
May 23 Received 10,450 cash for future services to be providedto a customer
May 31 Of the consulting services paid for on April 1, $2,000worth has been performed
May 31 A portion of the insurance paid for on April 1 hasexpired. No adjustment was made in April to Prepaid Insurance
May 31 Services worth 4,600 are not yet provided to the customerwho paid on April 30
May 31 Of the advertising paid for on May 31 2,050 worth is notyet used
May 31 The company has performed 5,500 of services that thecustomer paid for on May 23
1) Prepare entries for these transactions under the method thatrecords prepaid expenses and unearned revenues in the balance sheetaccounts. Also prepare adjusting entries at the end of theyear.
2) Prepare entries for these transactions under the method thatrecords prepaid expenses and unearned revenues in income statementaccounts. Also prepare adjusting entries at the end of theyear.
3) Explain why the alternative sets of entries in parts 1 and 2do not result in different financial statement amounts
