Short Answer Questions

2-1 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Chapter 02 Accounting for Accruals and Deferrals

Short Answer Questions

• Indicate how each event affects the elements of financial statements. Use the following letters to

record your answer in the box shown below each element. You do not need to enter amounts.

Jenkins Co. performed services for customers on account.

Survey of Accounting 4th Edition Edmonds Test Bank Visit TestBankDeal.com to get complete for all chapters

2-2 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

• Indicate how each event affects the elements of financial statements. Use the following letters to

record your answer in the box shown below each element. You do not need to enter amounts.

George Co. collected $1,000 cash from accounts receivable.

• Indicate how each event affects the elements of financial statements. Use the following letters to

record your answer in the box shown below each element. You do not need to enter amounts.

Sparta Co. provided $1,600 of services for a customer who paid $1,000 cash immediately and promised to pay an additional $600 one month later.

2-3 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

• Indicate how each event affects the elements of financial statements. Use the following letters to

record your answer in the box shown below each element. You do not need to enter amounts.

Aztec Co. signed contracts for $20,000 of services to be performed in the future.

• Indicate how each event affects the elements of financial statements. Use the following letters to

record your answer in the box shown below each element. You do not need to enter amounts.

At the end of the accounting period, Stewart Co. recognized accrued salaries.

2-4 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

• Indicate how each event affects the elements of financial statements. Use the following letters to

record your answer in the box shown below each element. You do not need to enter amounts.

Curtis Company received $250 from a customer for services to be performed at a future date.

• When is revenue recognized under accrual accounting?