What is the annual reporting period for the company

Assignment Help Accounting Basics

Reference no: EM132090314

Question: Recording Adjusting Journal Entries Refer to E4-3.

Required: Record the required adjusting journal entries for transactions a and b.

E4-3: Determining Adjustments and Accounting Equation Effects Mo Bo, a wireless phone carrier owned by sole proprietor Morris Bonner, completed its first year of operations on December 31, 2011. All of the 2011 entries have been recorded except for the following:

a. At year-end, employees earned wages of $6,000 that will be paid on the next payroll date, January 6, 2012.

b. At year-end, the company had earned interest revenue of $3,000. It will be collected March 1, 2012.

Required: 1. What is the annual reporting period for this company?

2. Identify whether each required adjustment is an unearned revenue, accrued revenue, prepaid expense, or accrued expense.

3. Show the accounting equation effects (amounts and direction of effects) of each required adjustment. Use + for increase, - for decrease, or NE for no effect. Complete the following schedule.

1452_Income Sheet.png

4. Why are these adjustments needed?

Reference no: EM132090314

Questions Cloud

What is the purpose of closing journal entries : What is the equation for each of the following statements: (a) income statement, (b) statement of owner's equity, and (c) balance sheet?

Compute net profit margin for h and r tacks : Preparing an Adjusted Trial Balance The following alphabetical listing is the adjusted account balances for H&R Tacks, owned and managed by Jeremy Daily.

Identify any accounts using trial balanace : Identifying Adjustments by Scanning a Trial Balance Coach, Inc. -the maker of handbags and other women's and men's accessories-was owned by Sara Lee Corporation

Find the probability that there have been 15 customers : Customers arrive at a service facility according to a Poisson process of rate 8/hour.Let N(t) be the number of customers that have arrived up to time t.

What is the annual reporting period for the company : Determining Adjustments and Accounting Equation Effects Mo Bo, a wireless phone carrier owned by sole proprietor Morris Bonner, completed its first year.

Find the mean age of the remaining children : The mean age of 25 of them was 8.75 years and that of another 65 was 10.51 years. Find the mean age of the remaining children?

Prepare a report to propose a network design : Report to propose a network design SBM4104 IT Infrastructure - Analysis and propose the organization IT infrastructure - Developing logical network diagram

Top management of a large company : Top management of a large company has told you that they really would like to be able to determine what the impact of years of service at their company

Determining adjustments and accounting equation : Determining Adjustments and Accounting Equation Effects Mary Fes, owner of Fes Company, has hired you to help with the accounting entries.

User Account

All Pages