Below is the Unadjusted Trial Balance for Curfew Inc. as at December 31,2021 which is...
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Accounting
Below is the Unadjusted Trial Balance for Curfew Inc. as at December 31,2021 which is the company's year-end: An analysis of the accounts shows the following: - Depreciation is $7,000 on equipment for the year. - Interest of $4,500 is due and unpaid on notes payable at December 31. - Income tax due and unpaid at December 31 is $24,000. - Insurance of $14,400 was paid on June 1, 2021 and expires May 31, 2022. - A count of supplies revealed only $1,500 worth of supplies left on hand at December 31. Required: a. Prepare the adjusting journal entries for Curfew Inc. as at December 31, 2021. (7 marks) b. Prepare the Income Statement for Curfew Inc. as at December 31, 2021 . (8 marks) c. Prepare the classified Balance Sheet for Curfew Inc. as at December 31, 2021. (10 marks) d. Prepare the closing entries as at December 31, 2021. (5 marks) e. Explain the difference between accrual-based and cash-based accounting
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