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Ramos Company 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 $7,000 which will be paid on the next payroll date, January 6 2012.
B. At year end the company had earned interesed revenue of $2,000. The cash wil be collected March 1, 2012.
Required:
A. What is the annual reporting period for this company?2. Identify whether each transaction results in adjusting a deferred or an accrued account. The the required adjusting entry for transactions A and B. Include appropriate dates and write a brief explanation of each entry.3. Why are these adjustments made?
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