acc 205 week 2 exercise assignment 2013 updated version 494834

Week Two Exercise Assignment Revenue and Expenses 1. Recognition of concepts. Ron Carroll operates a small company that books enter?tainers for theaters, parties, conventions, and so forth. The company’s fiscal year ends on June 30. Consider the following items and classify each as either (1) pre?paid expense, (2) unearned revenue, (3) accrued expense, (4) accrued revenue, or (5) none of the foregoing. a. Amounts paid on June 30 for a 1-year insurance policy b. Professional fees earned but not billed as of June 30 c. Repairs to the firm’s copy machine, incurred and paid in June d. An advance payment from a client for a performance next month at a convention e. The payment in part (d) from the client’s point of view f. Interest owed on the company’s bank loan, to be paid in early July g. The bank loan payable in part (f) h. Office supplies on hand at year-end 2. Analysis of prepaid account balance. The following information relates to Action Sign Company for 20X2: Insurance expense ?$4,350 ??Prepaid insurance, December 31, 20X2 ?1,900 ??Cash outlays for insurance during 20X2 ?6,200 ??Compute the balance in the Prepaid Insurance account on January 1, 20X2. 3. Understanding the closing process. Examine the following list of accounts: Interest Payable ?Accumulated Depreciation: Equipment ??Alex Kenzy, Drawing ?Accounts Payable ??Service Revenue ?Cash ??Accounts Receivable ?Supplies Expense ??Interest Expense ?? Which of the preceding accounts a. appear on a post-closing trial balance? b. are commonly known as temporary, or nominal, accounts? c. generate a debit to Income Summary in the closing process? d. are closed to the capital account in the closing process? 4. Adjusting entries and financial statements. The following information pertains to Fixation Enterprises: The company previously collected $1,500 as an advance payment for services to be rendered in the future. By the end of December, one third of this amount had been earned. Fixation…