Exercises (Sta X https/mewcomnecta r 3 Exercises (Static) A company\'s accountin

Question

Exercises (Sta X https/mewcomnecta r 3 Exercises (Static) A company's accounting records included the following accounts. Accounts Receivable (A)Prepaid Rent (A) Deferred Revenue (L) 313 2,573 a 25 240 c 328 253 12/31 12/31 295 Required: 1. For each T account, describe the typical transactions that cause it to increase and decrease. 2. Compute the missing amounts 12/31 26 Complete this question by entering your answers in the tabs below Required 1 Required 2 Compute the missinq amounts. DecreaseEnding Accounts Receivable 313 2.573 43 328 295 26 253 Prepaid Ren 25 s Delerred Revenue240$ C Required 1 Prev !4 of 20 Next > ere to search

Explanation / Answer

Requirement1 Accounts Receivable Increase-When creditg sales are made Decrease-When payment are received against credit sales Prepaid Rent Increase-When rent is paid in advance Decrease-When expenses are booked for rent as period passes. Deferred Revenue Increase-When payment are received in advance Decrease-When revenue is booked as and when services provided. Requirement 2 Beginning Increase Decrease(Beginning+increase-Ending) Ending Accounts Receivable 313 2573 2591 (313+2573-295) 295 Prepaid Rent 25 43 42 (25+43-26) 26 Deferred Revenue 240 328 315 (240+328-253) 253

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