Chapter 4, Problem 2CP

1.

To determine

Identify the amount of prepaid expenses and other current assets account at the end of the most recent year and to find the source of information.

2.

To determine

Identify the amount of deferred rent and other liabilities at January 31, 2012 in Company U’s report and to find the source of information.

3.

To determine

Identify the difference between prepaid rent and deferred rent.

4.

To determine

Describe the general terms of accrued liabilities.

5.

To determine

Identify the factors that would generate the interest income which is reported on the income statement.

6.

To determine

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

7.

To determine

Prepare Closing entry for prepaid expenses.

8.

To determine

Identify the Company U’s earnings per share for the three years reported.

9.

To determine

Compute the total asset turnover ratio for the three years reported and to suggest about the Company U.