Question

Q1. Differentiate between fundamental qualities and enhancing qualities for qualitative characteristics of financial information, give examples.

Q2. Both the unadjusted trial balance and adjusted trial balance for Smith Corporation on December 31, 2013, are listed below:

Smith Corporation Trial Balance December 31, 2013
	Unadjusted		Adjusted
	Debit	Credit	Debit	Credit
Cash Accounts Receivables Supplies Prepaid Insurance Land Vehicles Accumulated Depreciation-Vehicles Notes Payable Wages Payable Common Stock Dividends Revenue Wages Expense Utilities Expense Insurance Expense Rent Expense Depreciation Expense Supplies Expense	8,000 19,000 6,000 10,000 13,000 20,000 4,000 12,000 4,000 0 4,000 0 0	4,000 13,000 0 46,000 37,000	8,000 21,000 5,000 6,000 13,000 20,000 4,000 13,000 4,000 4,000 4,000 1,000 1,000	5,000 13,000 1,000 46,000 39,000
	100,000	100,000	104,000	104,000

Required: Prepare the five adjusting entries required at December 31, 2013.

Answer 1