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X Company completed it's first year of operations on Dec 31, 2011. All of the 2011 entires have been recorded except for the following:
a. @ year end, employees earned wages of $7000, which will be paid on the next payroll date, January 6, 2012.b. @ year end, company had earned interest revenue of $2,000. The cash will be collected March 1, 2012.
Questions:
1. What is the annual reporting period for this company?2. Identify whether each transaction results in adjusting a deffered or and accrued account. Give the required adjusting entry for transactions a and Include dates and write a breif description of each entry.3. Why are these adjustments made?
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Generate a review upon each of the auditing standards which you explore that should enlighten your own perception andopinion.
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