Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE TYPE THE ANSER! Nicholas Cash, the sole proprietor of Advantage Tennis Coaching (ATC), has met with his accountant to discuss the preparation of the

image text in transcribedPLEASE TYPE THE ANSER!

Nicholas Cash, the sole proprietor of Advantage Tennis Coaching (ATC), has met with his accountant to discuss the preparation of the ATC's financial statements for the year ended 31 December 2017. The following issues were discussed: 1. St Lucia Tennis Club owes $12 000 for a junior coaching clinic held in December. St Lucia Tennis Club has not yet been invoiced for this service ATC has not recorded the 2. ATC has S2000 unpaid wages as at 31 December 2017 that are not recorded in the 3.ATC has unpaid utility expenses (telephone, gas and electricity) amounting to $1500 service revenue in its accounting information system accounting information system. for the three months ended 31 December 2017 that are not recorded in the accountin;g 4. An annual membership fee of S800 was paid to National Tennis Coaching Association 5. ATC has office furniture and office equipment that cost $9 700. The equipment has a information system. on 1 March 2017. This payment was initially recorded as a prepaid membership. zero residual value and is depreciated over five years using the straight-line method. Required a. Prepare the relevant general journal adjusting entries (narrations required) for each of the issues identified b.State whether the profit, assets or liabilities would be understated, overstated or unaffected in the absence of the adjusting entry for each of the five issues above. c. Explain the difference between cash accounting and accrual accounting for would appear as revenue for a reporting period under accrual accounting that would Consider each issue individually determining profit for a reporting period. Provide an example of a transaction t t appear under cash accounting

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions