✔ 最佳答案
1. Over how many total annual accounting periods will this transaction directly affect the income statement of Courtland Corp.?
affect income statement of $ 2,100 of expenses
Althought Courtland Corp was not paid 2100 until December 2007. However, accrual concept - transactions and events shall be dealt with in the financial statements of an entity when incurred, rather than when the cash is received or paid.
2. By what amount would this $2,100 salary expense affect (increase of decrease) the income statement of Courtland Corp. for 2007 and the balance sheet as of December 31, 2007?
It will affect income statement/ Balance sheet
Profit for the year will decrease $2,100
beacuse salary is a expenses( Administrative expenses)
Balances sheet of the retained profit will decrease $2100
3. Should Courtland Corp. make an adjusting entry on December 31, 2007? If so, prepare the adjusting entry. If not, explain why no entry is required.
Courtland corp should make an adjusting entry
The adjusting entry
DR salary 2100
CR Accured 2100
