Question

Mobo, a wireless phone carrier, completed its first year of operations on October 31. All of the year's entries have been recorded, except for the following: At year-end, employees earned wages of $6,800, which will be paid on the next payroll date, November 6. At year-end, the company had earned interest revenue of $3,800. It will be collected December 1. Required: What is the annual reporting period for this company

Answer 1

Answer:

Explanation:

Missing word "2. Identify whether each required adjustment is a deferral or an accrual. First transaction is deferral O Second transaction is deferral Second transaction is accrual Both transactions are deferral O Both transactions are accruals First transaction is accrual 3. Show the accounting equation effects of each required adjustment. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Transaction Assets Liabilities + Stockholders' Equity b. 4. Why are these adjustments needed? Adjustments are needed to ensure the financial statements are up-to-date and complete Adjustments are needed to ensure the financial statements are prepared as per cash basis."

1. The annual reporting period for this company is November 1 through October 31

2. Both the transactions are accruals.

3. S/n   Assets         =      Liabilities            +       Stockholders equity

    a.   No effects     S&Wages payable $6,800 S&Wages Expenses -$6,800

    b.   I. receivable(3,800)  No effect                  Interest revenue $3,800

4. Adjustments are required to ensure that the financial statements are up-to-date and complete.