Chapter 4, Problem 2CP

1.

To determine

Indicate the amount of prepaid expenses and other current assets account reported as at February 3, 2018 for Incorporation E, and state the source of information.

2.

To determine

Indicate the amount of deferred revenue reported as at February 3, 2018 for Incorporation E, and find the source of information.

3.

To determine

Explain the term ‘accrued expenses,.

4.

To determine

Indicate the factors that would generate interest expense reported on the income statement.

5.

To determine

Mention the accounts which would not have balances on a post-closing trial balance.

6.

To determine

Prepare the closing entry for Prepaid Expenses.

7.

To determine

Indicate the earnings per share of Incorporation E for the three years reported.

8.

To determine

Ascertain the total asset turnover ratio for Incorporation E for the three years reported in the financial statements, and provide the inference of this ratio about Incorporation E.