ACC 225 WEEK 3 COMPLETE WORK

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ACC 225 WEEK 3 COMPLETE WORK

Week 3:

CheckPoint: Adjustments and Accrual and Cash Basis Accounting

Resource: Fundamental Accounting Principles, pp. 116-118 and 120

Due Date: Day 5 Complete Quick Study questions QS 3-1 and QS 3-9 on pp. 116 and 117 and Exercises3-1 and 3-7 on pp. 118 and 120.· Post your answers as an attachment.

Discussion Question 1

Due Date: Day 2 [Main] forum· Post your response to the following:o What is the difference between cash basis and accrual basis accounting?o Why do accrual-basis financial statements provide more useful information thancash-basis financial statements?o Describe when each method (cash basis and accrual basis accounting) would beappropriate to use.

Discussion Question 2

Due Date: Day 4 [Main] forum· Post your response to the following: The Ritz Manor is a popular seaside resort. Adouble room costs $220 for one night. In order to reserve a room, guests must pay onenight’s stay in advance. On each floor of the hotel, Vendalite Company operates vendingmachines with energy bars, juices, and other snacks for guests. Vendalite stocks themachines and collects revenue every week. Total average weekly revenue from thesemachines is $720. The Ritz Manor is entitled to 30% of the revenue from the machines.Vendalite sends a check to the Ritz Manor once at the end of each quarter for the resort’sshare of the revenue.o Based on this information, what type of adjusting entries does the Ritz Manor have?o How are the amounts of these adjustments determined?o Which accounts are affected?

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ACC 225 WEEK 3 COMPLETE WORK

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