Question

In: Accounting

do comapnies need to amke adjusting and closing entries at the end of every month

do comapnies need to amke adjusting and closing entries at the end of every month

Solutions

Expert Solution

Adjusting entries are needed to ensure the account balances are updated before the financial statements are generated.

At the end of an accounting period, companies generate a set of financial statements to include the income statement and the balance sheet, among others. Adjusting entries are recorded at the end of the accounting period but before the financial statements are prepared to ensure the account balances are up-to-date and that the financial statements, therefore, are the most accurate.

High-end computerized accounting systems may perform most of the adjusting entries automatically while less sophisticated accounting systems may require the adjusting entries to be entered manually. In either case, they are required to update the accounts to produce complete and accurate financial statements.

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Winners industries perform adjusting entries every month, but close its accounts only at year-end. The Agency’s...
Winners industries perform adjusting entries every month, but close its accounts only at year-end. The Agency’s year –end adjusted trail balance dated December 31, 2016, appears below. DATA Inventory 6,500 General and admin. Expenses 850 Common Stock 45,000 Cash 16,550 Operating expenses 1,350 Notes payable 600 Interest expense 900 Depreciation expense 500 Net Sales 12,800 Accounts receivable 9,600 Accounts payable 4,800 Long-Term Debt 55,000 Cost of Goods sold 5,750 Buildings and Equipment 122,000 Accumulated Depreciation 34,000 Taxes 1,440 Retained earnings...
I need a summary with an explanation  of Adjusting and closing entries and classified balance sheet ....
I need a summary with an explanation  of Adjusting and closing entries and classified balance sheet . For my accounting class please.
Students are to complete journal entries for each month, including adjusting and closing, trial balances, and...
Students are to complete journal entries for each month, including adjusting and closing, trial balances, and financial statements consisting of Income Statement, Statement of Retained Earnings, and Balance Sheet in classified format. The minimum chart of accounts for the Peavy Cleaning Corporation practice case is the following (more or less may be used): Assets – Cash, Accounts Receivable – Regular Customers, Accounts Receivable – Warhawk Gym, Prepaid Insurance, Supplies, Cleaning Equipment, Truck and Land. Liabilities – Accounts Payable – Home...
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...
I'll rate thanks Adjusting Entries and Errors At the end of August, the first month of...
I'll rate thanks Adjusting Entries and Errors At the end of August, the first month of operations, the following selected data were taken from the financial statements of Tucker Jacobs, an attorney: Net income for August $156,900 Total assets at August 31 832,000 Total liabilities at August 31 275,000 Total owner’s equity at August 31 557,000 In preparing the financial statements, adjustments for the following data were overlooked: Required: Unbilled fees earned at August 31, $8,680. Depreciation of equipment for...
How do closing entries simplify recordkeeping? Give an example of an adjusting entry that could is...
How do closing entries simplify recordkeeping? Give an example of an adjusting entry that could is closed. :) .
?I just need to have the 10 applicable adjusting entries listed at the end of the...
?I just need to have the 10 applicable adjusting entries listed at the end of the question. Mason Automotive is an automotive parts company that sells car parts and provides car service to customers. This is Mason's first year of operations and they have hired you as their CPA to prepare the income statement and balance sheet for their company. As such, January 1st , 2018 was the first day that Mason was in business. For the month of January,...
why adjusting entries and closing entries are needed. What is their purpose? How are they different?...
why adjusting entries and closing entries are needed. What is their purpose? How are they different? (no handwriting)
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT