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of - year adjusting entries ( when needed ) assuming ( a ) use of a balance sheet approach versus ( b ) use of
ofyear adjusting entries when needed assuming a use of a "balance sheet" approach versus b use of an "income statement" approach. You may assume a calendar year end for each scenario. Use Taccounts to show how the same financial statement results occur under either approach. The worksheet on the website includes an illustrative solution for the first scenario. Scenario A $ oneyear insurance policy was purchased on June X Scenario Unearned revenue of $ was collected on August times and of this amount was earned by the end of the year. Scenario On December times $ was prepaid for space in a tradeshow booth. The trade show is in February of times Scenario A $ customer deposit for future services was received on April X On June times the customer canceled the agreement and received a full refund.
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