I don't understand, complained Chris, who responded to your bulletin board posting in your responsibilities as a
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Respond to Chris.
1. When do prepayments occur? Accruals?
2. Describe the appropriate adjusting entry for prepaid expenses and for unearned revenues. What is the effect on net income, assets, liabilities, and shareholders' equity of not recording a required adjusting entry for prepayments?
3. Describe the required adjusting entry for accrued liabilities and for accrued receivables. What is the effect on net income, assets, liabilities, and shareholders' equity of not recording a required adjusting entry for accruals?
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Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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