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Accounting MCQS ...Looking forward 4 ur hep
- Thread starter ks136
- Start date
for the first question, telephone calls to 30 November = $1041, rental to 30 November = $156
the above costs are for 3 months September, October and November
the accounting year ends on 31 October, so the accrual for the year ended 31 October should only include the two months' cost
divide the total of above costs by 3 and then multiply by 2
[(1041+156)/3] *2 = 798
so the accrual is $798
hope it helped!
the above costs are for 3 months September, October and November
the accounting year ends on 31 October, so the accrual for the year ended 31 October should only include the two months' cost
divide the total of above costs by 3 and then multiply by 2
[(1041+156)/3] *2 = 798
so the accrual is $798
hope it helped!
for Q2, debit balance on the rent account ($36200) is a prepayment, so it is part of rent for the year
the payments of $157200 is for 12 months from April Year 2 to March Year 3, the accounting year ends on 31 december
so only include 9 months worth rent for year 2 (from april to december)
157200 * (9/12) = $117900
rent for year 2 = 36200 + 117900 = $154100
the payments of $157200 is for 12 months from April Year 2 to March Year 3, the accounting year ends on 31 december
so only include 9 months worth rent for year 2 (from april to december)
157200 * (9/12) = $117900
rent for year 2 = 36200 + 117900 = $154100
