a) Prepare a worksheet showing the October transactions and the October accrual adjustments for the BCE Company. b) Prepare BCE Company’s income statement and retained earnings statement for October, and its balance sheet (showing current and non-current assets) on October 31st . c) Answer the following questions: What would the October’s earnings of the company be, if the portion of unearned revenues recognized in October were £600 rather than £900? What would be the implications for November’s earnings if the portion of unearned revenues recognized in October were £600 rather than £900? Do you have reasons to suspect that the revenue may currently have been recognized prematurel
a) Prepare a worksheet showing the October transactions and the October accrual adjustments for the BCE Company. b) Prepare BCE Company’s income statement and retained earnings statement for October, and its balance sheet (showing current and non-current assets) on October 31st . c) Answer the following questions: What would the October’s earnings of the company be, if the portion of unearned revenues recognized in October were £600 rather than £900? What would be the implications for November’s earnings if the portion of unearned revenues recognized in October were £600 rather than £900? Do you have reasons to suspect that the revenue may currently have been recognized prematurel
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 18E
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a) Prepare a worksheet showing the October transactions and the October accrual adjustments for the BCE Company.
b) Prepare BCE Company’s income statement and
c) Answer the following questions:
- What would the October’s earnings of the company be, if the portion of unearned revenues recognized in October were £600 rather than £900?
- What would be the implications for November’s earnings if the portion of unearned revenues recognized in October were £600 rather than £900?
- Do you have reasons to suspect that the revenue may currently have been recognized prematurely?
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