Question
In: Accounting
Adjusting entries are made to balance sheet accounts only. usually required before financial statements are prepared....
Adjusting entries are
made to balance sheet accounts only.
usually required before financial statements are prepared.
made whenever management desires to change an account balance.
not necessary if the accounting system is operating properly.
Solutions
Expert Solution
Correct answer------------usually required before financial statements are prepared.
.
Adjusting entries are prepared so that financial statement can provide the correct and true picture of accounts at a particular date. Generally adjusting entries are made at the end of the month or year or quarter. Adjusting entries include recording of expenses rendered prepaid unpaid, recording of revenues which are earned but recorded as unearned before. Basically the expense and revenues that are occurred in the period are recorded using adjusting entries which are not reflected in the statement before adjustments such as depreciation , use of supplies, rent revenue earned, insurance expired etc.
There are three kinds of adjusting entries
1. Accrual
2. Deferred
3. Estimates
ekkarill92 answered 2 years agoRelated Solutions
Every time a company prepares financial statements, adjusting entries are required. Generally, financial statements are prepared...
Every time a company prepares financial statements, adjusting
entries are required. Generally, financial statements are prepared
at the end of each month, the end of each quarter and at the end of
each year.
Each adjusting entry affects a balance sheet account and an
income statement account. For example, Adjusting Entries for
Prepaid Assets or Fixed Assets involve decreasing the asset account
and increasing the expense account. Adjusting entries are made in
order properly follow GAAP.
Based on your review...
Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; End-of-Period Spreadsheet. The unadjusted trial balance of...
Ledger Accounts, Adjusting Entries, Financial Statements, and
Closing Entries; End-of-Period Spreadsheet.
The unadjusted trial balance of Recessive Interiors at January
31, 2018, the end of the year, follows:
Recessive Interiors
Unadjusted Trial Balance
January 31, 2018
Debit Balances
Credit Balances
11
Cash
13,100
13
Supplies
8,000
14
Prepaid Insurance
7,500
16
Equipment
113,000
17
Accumulated Depreciation—Equipment
12,000
18
Trucks
90,000
19
Accumulated Depreciation—Trucks
27,100
21
Accounts Payable
4,500
31
Common Stock
30,000
32
Retained Earnings
96,400
33
Dividends
3,000
41...
Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; End-of-Period Spreadsheet. The unadjusted trial balance of...
Ledger Accounts, Adjusting Entries, Financial Statements, and
Closing Entries; End-of-Period Spreadsheet.
The unadjusted trial balance of Recessive Interiors at January
31, 2018, the end of the year, follows:
Recessive Interiors
Unadjusted Trial Balance
January 31, 2018
Debit Balances
Credit Balances
11
Cash
13,100
13
Supplies
8,000
14
Prepaid Insurance
7,500
16
Equipment
113,000
17
Accumulated Depreciation—Equipment
12,000
18
Trucks
90,000
19
Accumulated Depreciation—Trucks
27,100
21
Accounts Payable
4,500
31
Common Stock
30,000
32
Retained Earnings
96,400
33
Dividends
3,000
41...
Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; End-of-Period Spreadsheet. The unadjusted trial balance of...
Ledger Accounts, Adjusting Entries, Financial Statements, and
Closing Entries; End-of-Period Spreadsheet.
The unadjusted trial balance of Recessive Interiors at January
31, 2018, the end of the year, follows:
Recessive Interiors
Unadjusted Trial Balance
January 31, 2018
Debit Balances
Credit Balances
11
Cash
13,100
13
Supplies
8,000
14
Prepaid Insurance
7,500
16
Equipment
113,000
17
Accumulated Depreciation—Equipment
12,000
18
Trucks
90,000
19
Accumulated Depreciation—Trucks
27,100
21
Accounts Payable
4,500
31
Common Stock
30,000
32
Retained Earnings
96,400
33
Dividends
3,000
41...
Prepare an adjusted trial balance. If an amount Ledger Accounts, Adjusting Entries, Financial Statements, and Closing...
Prepare an adjusted trial balance. If an amount
Ledger Accounts, Adjusting Entries, Financial Statements, and
Closing Entries; Optional Spreadsheet.
The unadjusted trial balance of Recessive Interiors at January
31, 2019, the end of the year, follows:
Recessive Interiors
Unadjusted Trial Balance
January 31, 2019
Debit Balances
Credit Balances
11
Cash
13,100
13
Supplies
8,000
14
Prepaid Insurance
7,500
16
Equipment
113,000
17
Accumulated Depreciation—Equipment
12,000
18
Trucks
90,000
19
Accumulated Depreciation—Trucks
27,100
21
Accounts Payable
4,500
31
Jeanne McQuay, Capital...
What happens to the income statement and balance sheet if no adjusting entries are made?
What happens to the income statement and balance sheet if no
adjusting entries are made?
What types of accounts to adjusting entries is usually impact and why
What types of accounts to adjusting entries is usually impact and
why
Why do some accounts need to be adjusted before the Financial Statements are prepared?
Why do some accounts need to be adjusted before the
Financial Statements are prepared?
Required: Prepare the proper ADJUSTING journal entries for the following events. Also, prepare a balance sheet...
Required: Prepare the
proper ADJUSTING journal entries for the following events. Also,
prepare a balance sheet after adjusting entries have been made.
The unadjusted trial balance for Tahini & Jam Inc. appears
below:
Tahini & Jam Inc.
Unadjusted Trial Balance
December 31, 2020
Debit
Credit
Cash
$75,500
Accounts
receivable
5,000
Prepaid
rent
1,000
Prepaid
insurance
15,000
Supplies
3,000
Equipment
40,000
Accumulated
depreciation-equipment
$4,000
Accounts
payable
11,000
Bank loan
payable
10,000
Unearned service
revenue
10,500
Common...
Multiple Choice. 1) Adjusting entries: •Affect cash accounts. •Affect both income statement and balance sheet accounts....
Multiple Choice.
1) Adjusting entries:
•Affect cash accounts.
•Affect both income statement and balance sheet
accounts.
•Affect only income statement accounts.
•Affect only equity accounts.
•Affect only balance sheet accounts.
2) Adjusting entries made at the end of an accounting period
accomplish all of the following except:
• Updating liability and asset accounts to their proper
balances.
• Assigning expenses to the periods in which they are
incurred.
• Assuring that external transaction amounts remain
unchanged.
• Assuring that financial...
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