1. Match each transaction with the type of entry that will be required at April 30,...

1. Match each transaction with the type of entry that will be required at April 30, the company's year-end.

A. Deferral Adjusting entry

B. Accrual Adjusting entry

The company has $8,300 in Prepaid Rent at the beginning of April and uses $3,600 of that for its April rent.

The company provides lawn care in April for customers who will be billed and make payment in May.

The company owes interest on loans for the month of April and will not pay this interest until May.

The company uses $1,600 worth of fertilizer from its stock of supplies.

The company provides lawn care in April for customers who paid in March.

2. Match each transaction with the type of entry that will be required at April 30, the company's year-end.

A. Deferral adjusting entry

B. Closing entry
C. Accrual adjusting entry
D. Closing entry
E. Accrual adjusting entry

The company transfers revenues of $50,000 and expenses of $32,000 to Retained Earnings.

The company makes an entry to allocate the use of equipment during the current account period.

The company transfers the balance in the Dividends account of $1,200 to Retained Earnings.

The company records income taxes.

Solutions

Expert Solution

1. Match each transaction with the type of entry that will be required at April 30, the company's year-end.

A. Deferral Adjusting entry

B. Accrual Adjusting entry

Entry	Deferral or Accrual Adjusting entry	Effect
The company has $8,300 in Prepaid Rent at the beginning of April and uses $3,600 of that for its April rent.	Deferral Adjusting entry	It will increase expense and decrease asset.
The company provides lawn care in April for customers who will be billed and make payment in May.	Accrual Adjusting entry	It will increase revenues and secondly it will also increase asset
The company owes interest on loans for the month of April and will not pay this interest until May.	Accrual Adjusting entry	It will increase expense and also increase Liability.
The company uses $1,600 worth of fertilizer from its stock of supplies.	Deferral Adjusting entry	It will increase expense and decrease asset.
The company provides lawn care in April for customers who paid in March.	Deferral Adjusting entry	It will increase revenues and secondly it will result in decreasing liability.

2. Match each transaction with the type of entry that will be required at April 30, the company's year-end.

A. Deferral adjusting entry

B. Closing entry
C. Accrual adjusting entry
D. Closing entry
E. Accrual adjusting entry

Entry	Deferral or Accrual or closing Adjusting entry	Effect
The company transfers revenues of $50,000 and expenses of $32,000 to Retained Earnings.	Closing entry	It will transfer the revenues and expenses to retained earnings
The company makes an entry to allocate the use of equipment during the current account period.	Deferral Adjusting entry	It will increase expense and decrease asset.
The company transfers the balance in the Dividends account of $1,200 to Retained Earnings.	Closing entry	It will transfer the dividends to retained earnings
The company records income taxes.	Accrual Adjusting entry	It will increase expense and also increase Liability.

ekkarill92 answered 1 year ago

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