pennfoster exam 061689
QUESTION Because Aqua Elite, Inc. is a new startup business , the beginning balances in all the general ledger accounts are zero to start. The length of the accounting periods are three months using a fiscal calendar year. (A fiscal calendar is on a yearly basis other than a calendar year—January 1st to December 31st. For example, a fiscal calendar year can be May 1, 2009, through April 30, 2010). Therefore, posting to the general ledger, adjustments and closing entries are made on a fiscal quarterly basis. Accounts Receivable and Accounts Payable subsidiary ledgers aren’t being used. Any references to invoicing, receipts, or payments “on account” assume changes to the running balance in the Accounts Receivable and Accounts Payable general ledger accounts. Payroll calculations aren’t necessary. Assume the salary is the gross pay with no deductions taken. Therefore, the net pay is the same as the gross pay, requiring a simplified journal entry to record the ex...