2.

A)April 30 Balance of Vue company is given below :

Cash 32,000 Accounts Receivable 25,000 Merchandise Inventory 35,000 Building 150,000 Accumulated Depreciation Building 20,000 Accounts Payable 12,000 Capital 149,000 Drawing 15,000 Sales 300,000 Sales Discounts 5,000 Sales Returns & Allowances 7,000 Cost of Goods Sold 175,000 Selling Expenses 18,000 Administrative Expenses 18,000

Using the information given, prepare the year-end closing entries. MARKS 5

B)

For each of the following case state what will be the impact on the basic equation state understated, overstated , or no affect. . 1. If you fail to journalize revenue earned but not yet received. 2. If you fail to record prepaid insurance that is expired . 3.if you Fail to record some portion of unearned revenues that has been earned.