Homework Answers
Option (A) is correct
Part of accrual accounting depends upon recording adjusting entries at the end of the accounting period.
In accrual accounting, revenues are recognized when earned regardless of cash received and expenses are recognized when incurred irrespective of when they are paid. So, at year end in accrual accounting, adjustment entries are prepared to accrued the revenues and expenses for the current period. Later on in the next period, entries relating to the receipt or payment, as the case may be, are prepared.
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Part of accrual accounting depends upon recording entries at the end of the accounting period. O...
Certain adjusting entries made at the end of an accounting period are reversed at the beginning...
Certain adjusting entries made at the end of an accounting
period are reversed at the beginning of the following period.
Required:
Analyze the following four adjusting entries made on December 31,
and determine whether a reversing entry is needed.
Certain adjusting entries made at the end of an accounting period are reversed at the beginning of the following period Required: Analyze the following four adjusting entries made on December 31, and determine whether a reversing entry is needed. Date DebitCredit...
Adjusting entries are used to update accounts at the end of an accounting period. O O...
Adjusting entries are used to update accounts at the end of an accounting period. O O True False
Which of the following is an adjustment made at the end of an accounting period? O...
Which of the following is an adjustment made at the end of an accounting period? O A. Record revenue earned but not yet billed OB. Record depreciation expense for the period O C. Record supplies expense for supplies used during the period D. All of the above are adjustments
Mastering Adjusting Entries The following information relates to questions 31 and 32: CBA Co. uses accrual...
Mastering Adjusting Entries The following information relates to questions 31 and 32: CBA Co. uses accrual basis accounting. It collects $20,000 in December for a job and credits unearned revenue. By the end of December, its year end. CBA has completed 40% of the work. 31. How much revenue has CBA earned in December? a. $20,000 b. $12,000 c. $8,000 d. $0 32. Which accounts does CBA debit and credit in the adjusting journal entry on December 31? a. Unearned...
Which of the following is not a characteristic of adjusting entries? Multiple Choice Allow for proper...
Which of the following is not a characteristic of adjusting entries? Multiple Choice Allow for proper recognition of revenues and expenses. Are recorded at the end of the accounting period. О O Reduce the balances of revenue, expense, and dividend accounts to zero. Are part of accrual-basis accounting.
If Monet Designs records expenses in the time period when incurred, which basis of accounting are...
If Monet Designs records expenses in the time period when incurred, which basis of accounting are they using? O A Cash basis OB. Adjustment basis OC Accrual basis OD. Expense basis Revenues are: O A. subtractions from net income. O B. additions to dividends. O c. additions to Retained Earnings. O D. subtractions from Retained Earnings. The adjusted balance for Prepaid Insurance is a 55 224 debit, Insurance Expense for the priod was 51 436. What was the balance for...
Which events during an accounting period trigger the recording of normal journal entries? Which event triggers...
Which events during an accounting period trigger the recording of normal journal entries? Which event triggers the making of adjusting entries?
Accrual Based Accounting – Adjusting Journal Entries (AJEs): Say Something, Inc. rents equipment for the 12...
Accrual Based Accounting – Adjusting Journal Entries (AJEs): Say Something, Inc. rents equipment for the 12 months, paying $14,400 cash in advance on August 1st, 2019 for the rental period of August 1st, 2019 – July 31, 2020. Record the journal entry for the original payment in advance on August 1st, 2019. Record the adjusting entry to recognize Rent Expense on December 31st, 2019. Assume Say Something uses an annual accounting period which ends on December 31st, 2019 and adjusting...
LOL What is the difference between cash basis accounting and accrual basis accounting a) Which method...
LOL What is the difference between cash basis accounting and accrual basis accounting a) Which method records transactions only when cash is received? b) Which method records transaction when it occurs, regardless of when the cash is paid? L02. What concepts and principles apply to accrual basis accounting a) Match the concept (by number) to the correct terminology. 1. Time period concept 2. Revenue recognition principle 3. Matching Principle 4. Fiscal year __An accounting time period that may not coincide...
Accrual Adjusting Entries Prepare adjusting journal entries for Sparky Electronics for the following items: a. Salaries...
Accrual Adjusting Entries Prepare adjusting journal entries for Sparky Electronics for the following items: a. Salaries for employees in the amount of $9,500 have not been paid. b. Interest expense of $4,560 for an outstanding note. c. Work performed but not yet billed for $13,300. General Journal Description Debit Ref. a. o o o o o
Certain adjusting entries made at the end of an accounting
period are reversed at the beginning of the following period.
Required:
Analyze the following four adjusting entries made on December 31,
and determine whether a reversing entry is needed.
Certain adjusting entries made at the end of an accounting period are reversed at the beginning of the following period Required: Analyze the following four adjusting entries made on December 31, and determine whether a reversing entry is needed. Date DebitCredit...
Adjusting entries are used to update accounts at the end of an accounting period. O O True False
Which of the following is an adjustment made at the end of an accounting period? O A. Record revenue earned but not yet billed OB. Record depreciation expense for the period O C. Record supplies expense for supplies used during the period D. All of the above are adjustments
Mastering Adjusting Entries The following information relates to questions 31 and 32: CBA Co. uses accrual basis accounting. It collects $20,000 in December for a job and credits unearned revenue. By the end of December, its year end. CBA has completed 40% of the work. 31. How much revenue has CBA earned in December? a. $20,000 b. $12,000 c. $8,000 d. $0 32. Which accounts does CBA debit and credit in the adjusting journal entry on December 31? a. Unearned...
Which of the following is not a characteristic of adjusting entries? Multiple Choice Allow for proper recognition of revenues and expenses. Are recorded at the end of the accounting period. О O Reduce the balances of revenue, expense, and dividend accounts to zero. Are part of accrual-basis accounting.
If Monet Designs records expenses in the time period when incurred, which basis of accounting are they using? O A Cash basis OB. Adjustment basis OC Accrual basis OD. Expense basis Revenues are: O A. subtractions from net income. O B. additions to dividends. O c. additions to Retained Earnings. O D. subtractions from Retained Earnings. The adjusted balance for Prepaid Insurance is a 55 224 debit, Insurance Expense for the priod was 51 436. What was the balance for...
LOL What is the difference between cash basis accounting and accrual basis accounting a) Which method records transactions only when cash is received? b) Which method records transaction when it occurs, regardless of when the cash is paid? L02. What concepts and principles apply to accrual basis accounting a) Match the concept (by number) to the correct terminology. 1. Time period concept 2. Revenue recognition principle 3. Matching Principle 4. Fiscal year __An accounting time period that may not coincide...
Accrual Adjusting Entries Prepare adjusting journal entries for Sparky Electronics for the following items: a. Salaries for employees in the amount of $9,500 have not been paid. b. Interest expense of $4,560 for an outstanding note. c. Work performed but not yet billed for $13,300. General Journal Description Debit Ref. a. o o o o o
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