Dear Students,

Please answer the following question and submit your answer by uploading it via

GaView.

Tracy Smith is researching a financial reporting issue. She did not find guidance for the specific

transaction in the Accounting Standards Codification. Briefly explain how she should proceed in

resolving her accounting research question.

Frank Reynolds is a controller researching an accounting issue and finds relevant information in an

industry publication that prescribes a particular accounting treatment. Frank's research also reveals

that the Codification indicates that a different approach is more appropriate. Which guidance should

Frank follow and why?

The December $31$ financial statements of Jagger Company included the effects of the following

transactions recorded on December $31$:

a$.$ Wages of $$6,800$ were recorded. These wages will be paid on January $2.$

b$.$ Interest expense of $$750$ that will be paid on February $1$ was recorded.

c$.$ Interest revenue of $$300$ that will be paid on March $1$ was recorded.

Required: Prepare the reversing entries for these transactions.

List the steps in preparing a worksheet.