During the year ended December 31, 2011, Rainmaker Entertainment Inc. (Rainmaker) experienced numerous accruals and deferrals. As

Question:

During the year ended December 31, 2011, Rainmaker Entertainment Inc. (Rainmaker) experienced numerous accruals and deferrals. As a long-term employee of Rainmaker's accounting and financial staff, it is your job to explain the effects of accruals and deferrals on Rainmaker's 2011 (Rainmaker's 2011 appear on My Accounting Lab.) Suppose the following questions were raised at the shareholders' meeting:
1. "Prepaid expenses and deposits" in the amount of $523,760 are listed on the December 31, 2011, What items would be included in this balance, and why is this account listed as a account instead of an expense account?
2. "Accounts payable and accrued liabilities" are shown on the in the amount of $1,308,881. Define an accrued liability.
3. What is "depreciation and amortization," and how much would have been recorded for the year ended December 31, 2011?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...