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              Requirement.xlsx
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Pre-Finals Requirement.xlsx
Cedric Naranjo Cleaners
Date Particulars Debit( Credit
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April 1  OQce Supplies Account 260,0  
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          Cash Account 00 260,0
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Account    
                    Unearned Cleaning 360,0  
#  
 
Revenues Account
(being cleaning revenues for 3 years
00
 
360,0
00
Novemb received)    
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Prepaid rent account 240,0  
Submit               Cash Account 00 240,0
(being rent paid in advance for year) 00
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쇮 3. If Naranjo were to use reversing entries, which set of entries, (1) or (2), would have to be
reversed? Why?
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If Naranjo were to use reversing entries, Set 2 or the set using Income-Expense Approach is
the set of entries that would have to be reversed because the company, Cedric Naranjo
Cleaners should be able to reverse the Prepaid Asset Account and the Unearned Revenue
Account in the Adjusting Balance or Entry in order to simplify the entries that will be used
in the next accounting period and this can only be done if the company records the
transactions using the Income-Expense Approach.

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SET 1: ASSET-LIABILITY APPROACH

CEDRIC NARANJO CLEANERS JOURNAL ENTRIES
DATE ACCOUNT TITLE / PARTICULARS DEBIT
Apr-01 Office Supplies 260,000
Company Get Course Hero Careers Help Legal
Cash Connect with Us
(Explanation: Bought Cleaning Supplies)
About Us iOS Leadership Contact
Aug-01 Us Cash Copyright Policy College
360,000 Life
Unearned Cleaning Revenues
Scholarships Android Careers FAQ Academic Integrity
(Explanation: To record cash received for services)
Facebook
Sitemap Chrome Extension Campus Rep Program Nov-01
Feedback Prepaid Rent Our Honor Code 240,000
Twitter
Cash
Q&A Archive Educators Privacy
(Explanation: Paid Rent)Policy LinkedIn
TOTAL 860,000
Standardized Tests Tutors Terms of Use YouTube
Education Summit Attributions Instagram
SET 2: INCOME-EXPENSE APPROACH
CEDRIC NARANJO CLEANERS JOURNAL ENTRIES
DATE ACCOUNT TITLE / PARTICULARS DEBIT
Apr-01 Office Supplies Expense 260,000
Copyright © 2022. Course Hero, Inc.   Privacy   Terms Course Hero is notCash sponsored or endorsed by any college or university.
(Explanation: Bought Cleaning Supplies)