Describe 2 accrual transactions and 2 deferral transactions that your peers will need to journalize. For the accrual transactions, please use credit or debit sales and credit purchase. For the deferral transactions, please use prepaid insurance and prepaid telephone charges. This is for an Electrotechnology Sales and Repairs business. Please include the dates that the transactions occurred. Please see the two pictures below, as I have included some examples of what the end product should look like. Please include an explanation as to what was done. Deferrals1. On October 1 TruGreen prepays insurance for the year for $10002. On October 2 TruGreen receives payment from a customer for a year'sworth of lawn care of $1200 for the year aheadAccruals1.On October 3 TruGreen performs service for business building for $100with a promise to pay from the business2. On October 3 TruGreen uses $20 of gas to perform service for businessbuilding Deferral1. Did $1,200 worth of work towards unearned service revenue of 5,000,2. Paid $4,200 for one years' worth of insurance.Accrual1. On October 12th, the company owes an employee $900 in salary that is tobe paid by October 13th.2. Revenue for services performed, but not recorded total $3,600.

Answered: Describe 2 accrual transactions and 2…

Business

Accounting

Describe 2 accrual transactions and 2 deferral transactions that your peers will need to journalize.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 4DQ

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