Assignment:
Problem 1:
During the first year of operations, a calendar year company received $14,400 in cash for rent on a portion of its building. Analysis indicates that of this amount $4,800 applies to next year.
a) Assuming the $14,400 was recorded initially in an income statement account (revenue), record all necessary entries.
b) Assuming the $14,400 was recorded initially in a balance sheet account (liability), record all necessary entries.
Problem 2:
Prior to adjustment at April 30, the end of the fiscal year, Salary Expense has a debit balance of $372,750. Salaries owed but not paid as of the same date total $5,275. On May 2, $6,000 is paid.
a) Present all necessary entries assuming a reversing entry is used.
b) Present all necessary entries assuming NO reversing entry is used.
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