Q17. Accrued revenue On December 15, 20×1, Entity A entered into a service contract with a customer. The service was provided on December 29, 20×1
Q16. Unearned revenue On December 1, 20×1, Entity A rented out one floor of the building it owns. The tenant paid $90,000 cash in advance
Q15. Accrued expenses Entity A borrowed $500,000 on December 1, 20×1. Annual interest rate is 12% and interest is payable at the end of every
Section 3. Accrual basis accounting Q14. Prepaid expenses On December 1, 20×1, Entity A rented office space for one year and prepaid the $36,000 yearly
Q13. Gross profit Entity A sold 200 units of merchandise in cash at a selling price of $50 per unit. Entity A purchased merchandise at
Q12. Cost of goods sold Entity A sold 100 units of merchandise in cash at a selling price of $17 per unit. The purchase cost