Chapter 9, Problem 4P

1.

To determine

Provide the adjusting entry to record wages for the end December 31, 2015 and also prepare journal entry to record the transaction carried out on January 6 of Year 2.

2.

To determine

Prepare journal entry to record collection of rent on December 10, 2015 and also to prepare adjusting entry for the given transaction on December 31, 2015.

3.

To determine

Identify the total amount of liabilities arising from the transactions that will be reported in the balance sheet on December 31, 2015.

4.

To determine

Explain the reason under which accrual method of accounting provides more useful information than cash method of accounting.