Questions 1-4 please. Question 1 requires filling out a balance sheet/income statement.

ACCOUNTING 706 MODULE 3: Accrual Basis of Accounting Under Armour, Inc. Annual Report (20 points) In their 2016 Annual Report, Under Armour Inc. disclosed the following in Note 2 (p. 65): Accrued Expenses At December 31, 2016, accrued expenses primarily included $60.8 million and $24.7 million of accrued compensation and benefits and marketing expenses, respectively. At December 31, 2015, accrued expenses primarily included $63.8 million and $17.8 million of accrued compensation and benefits and marketing expenses, respectively. 1. Prepare journal entries representative of the two adjusting entries recorded by Under Armour, Inc. for compensation and marketing expenses at December 31, 2016. Indicate the impact ( = increase, or = decrease) of the entries on the balance sheet and income statement categories. Assume that in 2017, Under Armour, Inc. paid the compensation and marketing expenses accrued at the end of 2016. Prepare summary journal entries representing payment of the accrued expenses. Indicate the impact ( = increase, or = decrease) of the entries on the balance sheet and income statement categories. BALANCE SHEET DATE ACCOUNT NAME DEBIT CREDIT A 12/31/16 12/31/16 2017 2017 = L + E q INCOME STMT E R x 2. If Under Armour, Inc. did not record the adjusting entries above at year end, what would their net income have been for 2016? 3. If Under Armour, Inc. did not record the adjusting entries at year end, what would the effect have been on their current ratio for 2016? 4. Why did Under Armour Inc. record the accrued expenses in 2016, even though it won't pay the amounts until 2017