The following transactions for carleton company

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Chapter 2 / Exercise E2-14
Survey of Accounting
Warren
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12) The following transactions for Carleton Company occurred during January 2013:1Purchased a two-year insurance policy for cash, $8,400.4Paid utilities bill received in December 2012, $450.9Performed a service on account, $1,200.16Paid bimonthly salary to employees, $2,700.21Received $800 from a customer on account.25Received $600 from January 9 transaction.30Prepared the adjusting entry for insurance from January 1 transaction.30Accrued wages of $2,750.Required: Show the amount of revenue and expense recognized for each transaction under both the accrual basis and the cash basis of accounting by completing the charts below.ACCRUAL BASISDateRevenueExpenseCASH BASISDateRevenueExpenseAnswer: ACCRUAL BASISDateRevenueExpenseJan. 9$1,200Jan. 16$2,700Jan. 30$ 350Jan. 30$2,750CASH BASISDateRevenueExpenseJan. 1$8,400Jan. 4$ 450Jan. 16$2,700Jan. 21$800Jan. 25$600Diff: 2 Type: ESL.O.: L.O. 3-13.2 Apply the revenue and expense recognition principles1) An accrual refers to an event:A) where the expense or revenue is recorded after the cash settlementB) where the liability is recorded after the cash settlementC) where the expense or revenue is recorded before the cash settlement.D) where the asset is recorded after the cash settlement
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Survey of Accounting
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Chapter 2 / Exercise E2-14
Survey of Accounting
Warren
Expert Verified
Financial Accounting 5ceChapter 3 – Accrual Accounting and the Financial StatementsAnswer:
CDiff: 3 Type: MCL.O.: L.O. 3-22) The accounting principle which tells accountants when to record revenue and in what amount is called the:
BDiff: 1 Type: MCL.O.: L.O. 3-23) Under the revenue recognition principle, a business should record revenue when the business:
CDiff: 3 Type: MCL.O.: L.O. 3-24) On October 25, 2013 Quick Corp. prints a cheque for November's rent payment. Quick Corp. mails the cheque on October 27 to the landlord. The landlord receives the cheque October 31 and cashes the cheque on November 2. When should Quick Corp. record the rent expense associated with this transaction?
CDiff: 3 Type: MCL.O.: L.O. 3-23-4
Financial Accounting 5ceChapter 3 – Accrual Accounting and the Financial Statements

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