4. Consider the transactions recorded below: a. b. C. d. e. f. ● Accounts Receivable ● Supplies Cash Service Revenue Cash Accounts Payable Accounts Receivable Advertising Expense Cash Accounts Payable Cash 2,700 6,500 200 3,000 1,000 3,000 2,700 6,500 200 3,000 Deferred Revenue 3,000 Post each transaction to T-accounts and compute the ending balance of each account. The beginning balance of each account before the transactions is: 1,000 Cash: $1,500 Accounts receivable: $4,000 Supplies: $200 Accounts payable: $5,000 Deferred revenue: $300 Service revenue and Advertising Expense each have a beginning balance of zero

4. Consider the transactions recorded below: a. b. C. d. e. f. ● Accounts Receivable ● Supplies Cash Service Revenue Cash Accounts Payable Accounts Receivable Advertising Expense Cash Accounts Payable Cash 2,700 6,500 200 3,000 1,000 3,000 2,700 6,500 200 3,000 Deferred Revenue 3,000 Post each transaction to T-accounts and compute the ending balance of each account. The beginning balance of each account before the transactions is: 1,000 Cash: $1,500 Accounts receivable: $4,000 Supplies: $200 Accounts payable: $5,000 Deferred revenue: $300 Service revenue and Advertising Expense each have a beginning balance of zero

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 2CYBK: In the revenue cycle, the most significant accounts typically include revenue and accounts...

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