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