At December 31,2010,the Following Adjusting Entries Were Recorded in the Accounts

question 100

Short Answer

At December 31,2010,the following adjusting entries were recorded in the accounts of CPA Company:
$$\begin{array} { c c c } \text { Interest receivable } & 2,000 & \\\text { Interest revenue } & & 2,000 \\\text { Wages expense } & 10,000 & \\\text { Wages payable } & & 10,000\end{array}$$ There were no other accrued receivables or payables on CPA's books in 2010.
Calculate the balances in the following accounts immediately after the closing entries were posted. $\begin{array}{|l|l|l|l|}\hline \text { Transactions } & \text { Accounts } \\ & {\text { Debit }} & \text { Credit } \\\hline 1 . \text { Interest receivable }& \$ & \$ \\\hline 2 . \text { Interest revenue }& \$ & \$ \\\hline 3 .\text { Wages expense } & \$ & \$ \\\hline 4 . \text { Wages payable }& \$ & \$ \\\hline\end{array}$

Recognize the effect of inventory transactions on the cost of goods sold.

Identify the significance of physical inventory counts and their impact on inventory valuation.

Analyze the financial implications of estimated returns on sales and inventory management.

Understand sales revenues recognition and the impact of customer returns on financial statements.

---

Definitions:

Written Notice

A formal, documented communication required in many legal situations to officially inform a party of certain actions or intentions.

Oral Notice

Notification or communication of information conveyed through spoken words rather than written form.

Commercial Illegality

The state of being contrary to the laws governing commerce and business practices.

Commercial Impracticability

A doctrine in contracts law where a party may be relieved from performing under a contract, due to unforeseen and impractical hardships, not within the contemplation of the parties at the time of the contract’s formation.