The Meow Company was organized on January 1, 2020, and since its inception has not recognized accruals and deferrals. Selected accounts revealed the following information: Accruals and Deferrals Not Recognized at Year-end Prepaid expenses 2020 2021 2022 30,000 28,000 29,000 34,000 Unearned revenue 20,000 15,000 Accrued expenses 27,500 25,000 27,000 Accrued revenue 42,500 45,000 41,000 Year 2020 2021 2022 Profit (Loss) 240,000 (120,000) 200,000 Based on the above and the result of your audit, compute the corrected profit for the following year: 2020 A. 319,000 profit В. 264,000 рroft C. 216,000 profit D. 246,000 profit 2021 А. 98,000 loss B. 122,000 loss C. 118,000 loss D. 127,000 loss 2022 A. 233,000 profit В. 211,000 рrofit C. 222,000 profit D. 244.000 profit
The Meow Company was organized on January 1, 2020, and since its inception has not recognized accruals and deferrals. Selected accounts revealed the following information: Accruals and Deferrals Not Recognized at Year-end Prepaid expenses 2020 2021 2022 30,000 28,000 29,000 34,000 Unearned revenue 20,000 15,000 Accrued expenses 27,500 25,000 27,000 Accrued revenue 42,500 45,000 41,000 Year 2020 2021 2022 Profit (Loss) 240,000 (120,000) 200,000 Based on the above and the result of your audit, compute the corrected profit for the following year: 2020 A. 319,000 profit В. 264,000 рroft C. 216,000 profit D. 246,000 profit 2021 А. 98,000 loss B. 122,000 loss C. 118,000 loss D. 127,000 loss 2022 A. 233,000 profit В. 211,000 рrofit C. 222,000 profit D. 244.000 profit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The Meow Company was organized on January 1, 2020, and since its inception has not recognized accruals and deferrals. Selected
accounts revealed the following information:
2020
Accruals and Deferrals Not Recognized at Year-end
Prepaid expenses
Unearned revenue
2021
2022
29,000
30,000
34,000
20,000
28,000
15,000
Accrued expenses
27,500
25,000
27,000
Accrued revenue
42,500
45,000
41,000
Year
2020
2021
2022
Profit (Loss)
240,000
(120,000)
200,000
Based on the above and the result of your audit, compute the corrected profit for the following year:
2020
A. 319,000 profit
B. 264,000 profit
C. 216,000 profit
D. 246,000 profit
2021
A.
98,000 loss
B. 122,000 loss
C. 118,000 loss
D. 127,000 loss
2022
A. 233,000 profit
B. 211,000 profit
C. 222,000 profit
D. 244.000 profit
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