Describe the adjusting entries, including the accounts used, for 1) accrued expenses and 2) accrued revenues....
Describe the adjusting entries, including the accounts used, for 1) accrued expenses and 2) accrued revenues.
Homework Answers
Ans:
Accrued Expenses: Under the accrual method of accounting, every business must report all the expenses in the financial statements that it has incurred in an accounting period. However, accrued expenses can't be recorded in the statement of financial performance (P/L account), as it is not complying with the matching concept (i.e.: the expenses is not for the current year).
Hence, the adjusting entry would be:
| Account Title | Debit | Credit |
| Temporary Expense | XXXX | |
| Accrued Expenses | XXXX |
Accrued Revenue: Under the accrual method of accounting, every business must report all the revenues in the statement of financial performance (P/L account) that it has earned in an accounting period. However, accrued revenue can't be recorded, as the corresponding sales entry has not been processed (as the sale is for the next year).
Hence, the adjusting entry would be:
| Account Title | Debit | Credit |
| Accrued Receivables | XXXX | |
| Service Revenues | XXXX |
Add Answer to:
Describe the adjusting entries, including the accounts used, for 1) accrued expenses and 2) accrued revenues....
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Classify the following adjusting entries as involving prepaid expenses, unearned revenues, accrued expenses, or accrued revenues. a. To record rent expense incurred but not yet paid. | b. To record cash received from gift card sales. c. To record service revenues performed but not yet billed (nor recorded). d. To record expiration of prepaid rent. e. To record supplies used as supplies expense.
True or False 1. Adjusting entries result in a better matching of revenues and expenses. 2....
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correct answer 1) Types of adjusting entries include all of the following except: A) Accrued Expenses...
correct answer
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1. Journalize the adjusting entries necessary on November 30, 20Y3. Refer to the Chart of Accounts...
1.
Journalize the adjusting entries necessary on November 30,
20Y3. Refer to the Chart of Accounts for exact wording of account
titles.
2.
Determine the revenues, expenses, and net income of Trident
Repairs & Service before the adjusting entries.
3.
Determine the revenues, expenses, and net income of Trident
Repairs & Service after the adjusting entries.
4.
Determine the effect of the adjusting entries on Retained
Earnings.
Adjusting entries Instructions Chart of Accounts Journal Final Questions Instructions UNADJUSTED TRIAL BALANCE...
We have learned about four types of adjustments: (1) prepaid expenses, (2) unearned revenues, (3) accrued...
We have learned about four types of adjustments: (1) prepaid expenses, (2) unearned revenues, (3) accrued revenues, and (4) accrued expenses. Select one specific adjusting entry that falls under one of the four types, enter it in the subject box, and post the following: 1. A description of the adjustment and why it is necessary. 2. Provide an example of the transaction; include the debit and credit, with dates and amounts in the proper journal entry format. 3. In your replies...
which of the following adjusting enteries involves the cash account deferred revenues accrued expenses deffered liabilities...
which of the following adjusting enteries involves the cash account deferred revenues accrued expenses deffered liabilities none of these
1. Accruals are types of adjusting entries that accumulate during a period when amounts were previously...
1. Accruals are types of adjusting entries that accumulate during a period when amounts were previously unrecorded. The two specific types of adjustments are accrued revenues and accrued expenses. True False 2. Deferrals are prepaid expenses and revenue accounts that have delayed recognition until they have been used or earned. This recognition may not occur until the end of a period or future period. True False
We have learned about four types of adjustments: (1) prepaid expenses, (2) unearned revenues, (3) accrued...
We have learned about four types of adjustments: (1) prepaid expenses, (2) unearned revenues, (3) accrued expenses, and (4) accrued revenues. Select one specific adjusting entry that falls under one of the four types and post the following: 1. A description of the adjustment and why it is necessary. 2. Provide an example of the transaction; include the debit and credit, with dates and amounts. In order to receive full credit for your post you must reply to another students...
Explain the difference between A) Accrued revenues and unearned revenues; B) Accrued expenses and prepaid expenses;...
Explain the difference between A) Accrued revenues and unearned revenues; B) Accrued expenses and prepaid expenses; C) Give an example of each.
Classify the following adjusting entries as involving prepaid expenses, unearned revenues, accrued expenses, or accrued revenues. a. To record rent expense incurred but not yet paid. | b. To record cash received from gift card sales. c. To record service revenues performed but not yet billed (nor recorded). d. To record expiration of prepaid rent. e. To record supplies used as supplies expense.
correct answer
1) Types of adjusting entries include all of the following except: A) Accrued Expenses B) Accrued Cash C) Accrued Revenues D) Prepaid Items 2) The order of the steps in the accounting cycle includes: A) Adjusted Trial Balance, financial reports, adjusting entries, Trial Balance B) Adjusted Trial Balance, adjusting entries, financial reports, Trial Balance C) Trial Balance, adjusting entries, Adjusted Trial Balance, financial reports D) Trial Balance, financial reports, adjusting entries, Adjusted Trial Balance 3) If a count...
1.
Journalize the adjusting entries necessary on November 30,
20Y3. Refer to the Chart of Accounts for exact wording of account
titles.
2.
Determine the revenues, expenses, and net income of Trident
Repairs & Service before the adjusting entries.
3.
Determine the revenues, expenses, and net income of Trident
Repairs & Service after the adjusting entries.
4.
Determine the effect of the adjusting entries on Retained
Earnings.
Adjusting entries Instructions Chart of Accounts Journal Final Questions Instructions UNADJUSTED TRIAL BALANCE...
1. Accruals are types of adjusting entries that accumulate during a period when amounts were previously unrecorded. The two specific types of adjustments are accrued revenues and accrued expenses. True False 2. Deferrals are prepaid expenses and revenue accounts that have delayed recognition until they have been used or earned. This recognition may not occur until the end of a period or future period. True False
We have learned about four types of adjustments: (1) prepaid expenses, (2) unearned revenues, (3) accrued expenses, and (4) accrued revenues. Select one specific adjusting entry that falls under one of the four types and post the following: 1. A description of the adjustment and why it is necessary. 2. Provide an example of the transaction; include the debit and credit, with dates and amounts. In order to receive full credit for your post you must reply to another students...
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