Question
We need to recognize the income and expenses of IB Issue 6.4 (IB is a magazine name & 6.4 is the issue number) in Jun
We need to recognize the income and expenses of IB Issue 6.4 (IB is a magazine name & 6.4 is the issue number) in Jun 2020. However, it is now Jul 2020 and we still have not received the printing bill (printing is one of the most substantial expenses of magazine production). (a) What are the Debit and Credit entry you will put into system if we must close off Jun accounts on 5 Jul 2020? Which schedule below would you use for documentation? (For documentation, we keep the following schedules in Excel manually: 1. Depreciation Schedule; 2. Prepayments Schedule; 3. Accrued Expenses Schedule; 4. Deferred Income Schedule; 5. Accrued Revenues Schedule) (b) Suppose you performed the transactions in (a) on 05/07/2020 for the IB 6.4 printing costs and the Jun 2020 accounts have now been closed. On 20 Jul 2020 (15 days after closing), you received the bill for IB 6.4 printing costs. How would you process that bill (i.e. Which month to enter the bill..)? What would be the Debit and Credit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started