If Adjusting Entries are not made for prepaid or unearned, what will be the result? What...

If Adjusting Entries are not made for prepaid or unearned, what will be the result? What will be under or overstated?

Expert Solution

ekkarill92 answered 2 years ago

Problem 12-1: Journalize adjusting entries for prepaid (deferred) expenses. Journalize the adjusting entries for Rolando Associates...

Problem 12-1: Journalize adjusting entries for prepaid (deferred) expenses. Journalize the adjusting entries for Rolando Associates for the following: On May 31, Rolando Associates' Trial Balance shows a debit balance in the Office Supplies account of $375. An inventory on May 31 shows that $75 worth of supplies are on hand. The Prepaid Insurance account has a debit balance of $1,000. The insurance was purchased on March 1 for $1,200 and represents one year's coverage. Insurance expense has not been...

Directions: Journalize the adjusting entries. Adjustment for Prepaid Insurance The Prepaid Insurance account began the year...

Directions: Journalize the adjusting entries. Adjustment for Prepaid Insurance The Prepaid Insurance account began the year with a balance of $460. During the year, insurance in the amount of $1,040 was purchased. At the end of the year (December 31), the amount of insurance still unexpired was $700. Prepare the year-end entry in journal form to record the adjustment for insurance expense for the year. Adjustment for Supplies The Supplies account began the year with a balance of $380. During...

Adjusting entries for unearned items typically include which of the following related types of accounts:

QUESTION 11Adjusting entries for unearned items typically include which of the following related types of accounts:Revenue and Liability accountsRevenue and Asset accountsExpense and Liability accountsExpense and Asset accountsQUESTION 12Before making adjusting entries you should:Close permanent accountsPrepare a Trial BalanceClose temporary accountsPrepare a balance sheetQUESTION 13To record adjusting journal entries in QuickBooks, select:Company Center > Journal Entry iconAccountant Menu > Make General Journal EntriesBanking section of the Home Page > Journal Entry iconCompany section of the Home Page > Journal Entry...

What happens to the income statement and balance sheet if no adjusting entries are made?

Prepaid items for which adjusting entries may be necessary include all of the following except:

Prepaid items for which adjusting entries may be necessary include all of the following except:A.prepaid insuranceB.prepaid rentC.unearned revenueD.office supplies

- Why are adjusting entries important? -What are the consequences of not booking adjusting entries at...

- Why are adjusting entries important? -What are the consequences of not booking adjusting entries at the end of the accounting period?

What is the purpose of making adjusting entries? Your answer should relate adjusting entries to the...

What is the purpose of making adjusting entries? Your answer should relate adjusting entries to the goals of accrual accounting. Do adjusting entries affect income statement accounts, balance sheet accounts, or both? Explain.

What are the types of adjusting entries? Know how to do adjusting entries. How do you...

What are the types of adjusting entries? Know how to do adjusting entries. How do you calculate cost of goods sold? How do you calculate cost of goods available for sale? What are the inventory methods and the tax effects of each one of them? (pg 255 – 261) What are the four basic financial statements and how they are related to each other? What are the characteristics of useful information (pg 49) and the constraints in accounting (pg 51)?

Adjusting entries are

Adjusting entries are not necessary if the accounting system is operating properly. usually required before financial statements are prepared. made whenever management desires to change an account balance. made to balance sheet accounts only.

X Company's accountant made adjusting entries at the end of the period for the following reasons:...

X Company's accountant made adjusting entries at the end of the period for the following reasons: $2,862 of unpaid interest on a bank loan $507 of wages that were earned by employees but not paid $1,380 of insurance that expired What was the effect of these entries on total equities?

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