Determining Financial Statement Effects of Transactions Involving Accrued Liabilities and Deferred Revenue Using the data from the previous exercise, complete the following requirements.
Required:
1. Determine the financial statement effects for each of the following: ( a ) the adjusting entry for accrued wages required on December 31, 2012, ( b ) the January 6, 2013, journal entry for payment of any unpaid wages from December 2012, ( c ) the journal entry for the collection of rent on December 10, 2012, and ( d ) the adjusting entry for rent on December 31, 2012. Indicate the effects (e.g., cash + or ) using the following schedule:
Date Assets Liabilities Stockholders’ Equity
2. Explain why the accrual method of accounting provides more relevant information to financial analysts than the cash method.