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Question - On the last day of the fiscal year, a co-worker asks you to cut a check for $2,000 as a miscellaneous expense for supplies in order to complete the project for a VIP customer today. You notice the invoice looks a little different from other invoices that are usually processed. You know that by preparing the closing entries tomorrow, the miscellaneous expense will be set to zero for the beginning of the year.
Required -
1. Should you issue this check today and record the expense or write the check tomorrow?
2. How would the company be affected if the check is written and the invoice ends up being erroneous?
Calculate the balance of Retained Earnings that would appear on a balance sheet at December 31, 2010. Calculate the net income
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