ADM 2340C Quiz No. 1 Sol

ADM 2340C Quiz No. 1 Sol - ADM 2340C Quiz No. 1 Fall 2008 ....

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ADM 2340C Quiz No. 1 Fall 2008 . . . . . . . / 30 marks (SOLUTION) Question No. 1 (11 marks) The following information was available on December 31, 2008, the end of the year for Advantage Advertising Corporation (AAC): a. On June 1, 2008, AAC received $200,000 from a client to buy advertising spots for them for the next 12 months. As at December 31, 75% of the amount had been spent on ads that had been duly run during 2008. The remainder would be spent in early 2009. b. On September 1, 2008, AAC moved to a new location. The company gave the landlord a $5,000 damage deposit to be held by the landlord for the full 5-year term of the lease. In addition, AAC prepaid 6 months rent in the amount of $12,000. The company also spent $20,000 on new furniture and equipment that is expected to last for 20 years and to be worthless at that time. c. The office supplies account on January 1, 2008 had a balance of $700. Supplies worth $5,000 were bought during the year and the balance at the end of the year was $1,800 which included $1,000 of stationary with the old address on it and which was no longer useful to AAC. Required: For each of the three transactions above, indicate what items and their dollar value amount should appear on the Income Statement for the year ended December 31, 2008 and
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This note was uploaded on 12/08/2009 for the course TEFLER ADM1300 taught by Professor Koppel during the Fall '09 term at University of Ottawa.

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ADM 2340C Quiz No. 1 Sol - ADM 2340C Quiz No. 1 Fall 2008 ....

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