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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
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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