Determining Financial Statement Effects of Transactions Involving Accrued Liabilities  and...

Determining Financial Statement Effects of Transactions Involving Accrued Liabilities  and Deferred Revenue

Using the data from the previous exercise, complete the following requirements. ,

Required:

1. Determine the financial statement effects tor each of the following: (a) the adjusting entry for accrued wages required on December 31, 2012. (b) the January 6. 2013. journal entry for payment of any unpaid wages from December 2012. (c) the journal entry for the collection of rent on December 10, 2012. and (d) the adjusting entry for rent on December 31, 2012. Indicate the effects (e.g., cash - or — I using the following schedule:

2. Explain why the accrual method of accounting provides more relevant information to financial analysts than the cash method.