Problem 3-2A Preparing adjusting and subsequent journal entries LO
C1, A1, P1
Arnez Co. follows the practice of recording prepaid expenses and unearned
revenues in balance sheet accounts. The companys annual accounting period ends
on December 31, 2013. Th
The accrual basis of accounting:
Is generally accepted for external reporting because it is more useful than cash basis for
most business decisions.
Is flawed because it gives complete information about cash flows.
Recognizes revenues when received in cas
The following transactions occurred during July:
1. Received $1,060 cash for services provided to a customer during July.
2. Received $5,200 cash investment from Barbara Hanson, the owner of the business.
3. Received $910 from a customer in partial paymen
M Assignment #2 - 51CI x .r" m Chapter 3 Practice i x\ _
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Problem 3-2A Preparing adjusting and subsequentjournal entries L0 C1, A1, P1
Amez Co. follows the practice of recordi