Answer each of the following questions related to international accounting standards.
a. Explain how the closing process is different between accounting under IFRS versus U.S. GAAP.
b. What basic principle do U.S. GAAP and IFRS rely upon in recording the initial acquisition value for nearly all assets?
|
General Ledger |
||||
|
M. Mallon, Capital |
|
Acct. No. 301 |
||
|
Date |
PR |
Debit |
Credit |
Balance |
|
Mar. 31 |
G2 |
|
|
42,000 |
|
M. Mallon, Withdrawals |
|
Acct. No. 302 |
||
|
Date |
PR |
Debit |
Credit |
Balance |
|
Mar. 31 |
G2 |
|
|
25,000 |
|
Services Revenue |
|
Acct. No. 401 |
||
|
Date |
PR |
Debit |
Credit |
Balance |
|
Mar. 31 |
G2 |
|
|
74,000 |
|
Depreciation Expense |
|
Acct. No. 603 |
||
|
Date |
PR |
Debit |
Credit |
Balance |
|
Mar. 31 |
G2 |
|
|
17,000 |
|
Salaries Expense |
|
Acct. No. 622 |
||
|
Date |
PR |
Debit |
Credit |
Balance |
|
Mar. 31 |
G2 |
|
|
21,000 |
|
Insurance Expense |
|
Acct. No. 637 |
||
|
Date |
PR |
Debit |
Credit |
Balance |
|
Mar. 31 |
G2 |
|
|
4,500 |
|
Rent Expense |
|
Acct. No. 640 |
||
|
Date |
PR |
Debit |
Credit |
Balance |
|
Mar. 31 |
G2 |
|
|
9,600 |
|
Income Summary |
|
Acct. No. 901 |
||
|
Date |
PR |
Debit |
Credit |
Balance |
|
|
|
|
|
|