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Please answer the questions 10.12, 10.13 and 10.14 with your detailed explanations, it's much appreciated! 2 The trainee accountant at Judd Co has forgotten to
Please answer the questions 10.12, 10.13 and 10.14 with your detailed explanations, it's much appreciated!
2 The trainee accountant at Judd Co has forgotten to make an accrual for rent for December in the financial statements for the year ended 31 December 20X2. Rent is charged in arrears at the end of February, May, August and November each year. The bill payable in February is expected to be $30,000. Judd Co's draft statement of profit or loss shows a profit of $25,000 and draft statement of financial position shows net assets of $275,000. What is the profit for the year and what is the net asset position after the accrual has been included in the financial statements? 13 Buster's draft financial statements for the year to 31 October 20X5 report a loss of $1,486. When he prepared the financial statements, Buster did not include an accrual of $1,625 and a prepayment of $834. What is Buster's profit or loss for the year to 31 October 205 following the inclusion of the accrual and prepayment? A loss of $695 A loss of $2,277 A loss of $3,945 A profit of $1,807 4 Bookz Co pays royalties to writers annually in February, the payment covering the previous calendar year. As at the end of December 20X2, Bookz Co had accrued $100,000 in royalties due to writers. However, a check of the royalty calculation performed in January 203 established that the actual figure due to be paid by Bookz Co to writers was $150,000. Before this under-accrual was discovered, Bookz Co's draft statement of profit or loss for the accounting year ended 31 December 20X2 showed a profit of $125,000 and their draft statement of financial position showed net assets of $375,000. What will Bookz Co's profit and net asset position be after an entry to correct the underaccrual has been correctedStep by Step Solution
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