True or False 1. Adjusting entries result in a better matching of revenues and expenses. 2....
True or False
1. Adjusting entries result in a better matching of revenues and expenses.
2. Accrued expenses are expenses not yet paid during the period but are owed and not yet recorded.
3. Accrued Revenue is revenue that has not yet been earned and not yet received nor recorded at the end of the period.
4. Liabilities are the owner's rights and claims to the property (assets) of a business.
5. The balance sheet is a financial statement that shows revenues earned and expenses incurred during a specified period of time.
Homework Answers
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1. True As per the matching principle of accounting, all the expenses are to be matched with the related revenues in the financial statement period. Adjusting entries help achieve this feat. |
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2. True Accrued expenses are the expenses incurred by the company but not yet paid. They are shown under current liabilities section of balance sheet. |
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3. False Accrued revenue is the revenue that was earned by the business, but not yet received. Hence the statement is false. |
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4. False Liabilities are the payment obligations of a business. Shareholders' equity denotes claims of owners to the business assets. |
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5. False Balance sheet is a financial statement which shows the financial position (assets, liabilities) on a given date. Hence the statement is false. |
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True or False
1. Adjusting entries result in a better matching of revenues and
expenses.
2....
Classify the following adjusting entries as involving prepaid expenses, unearned revenues, accrued expenses, or accrued revenues....
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.
Adjusting entries affect at least one balance sheet account and at least one income statement account....
Adjusting entries affect at least one balance sheet account and at least one income statement account. For the entries below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the income statement account and which is the balance sheet account. Assume the company records prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. a. Entry to record revenue earned that was previously received as cash...
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
Preparing and Journalizing Adjusting Entries For each of the following separate situations, prepare the necessary adjustments...
Preparing and Journalizing Adjusting Entries For each of the following separate situations, prepare the necessary adjustments (a) using the financial statement effects template and (b) in journal entry form. 1. Unrecorded depreciation on equipment is $1,220. 2. On the date for preparing financial statements, an estimated utilities expense of $780 has been incurred, but no utility bill has yet been received or paid. 3. On the first day of the current period, rent for four periods was paid and recorded...
help me with correct answers please 5) Adjusting entries often involve cash. 6) Adjusting entries are...
help me with correct answers please
5) Adjusting entries often involve cash. 6) Adjusting entries are typically prepared on a weekly basis. _7) Accumulated Depreciation appears on the balance sheet as a liability account. 1 8) Net Income is a specific account in a company's chart of accounts. 9) A net loss results when assets are greater than liabilities. T 10) Reporting 10) Reporting revenues when they are earned and expenses when they are incurred is called accrual basis accounting....
The Malaise Company is recording adjusting journal entries. Which of the following adjusting entries will result...
The Malaise Company is recording adjusting journal entries. Which of the following adjusting entries will result in a decrease in assets and equity? The entry to record the earned portion of rent received in advance The entry to record accrued wages payable The entry to record a revenue earned but not yet received The entry to record the used portion of prepaid insurance The entry to record the payment of a dividend which was previously declared Lincoln Comnany
Adjusting Entries For each of the following unrelated situations, prepare the necessary adjusting entry in general...
Adjusting Entries For each of the following unrelated situations, prepare the necessary adjusting entry in general journal form a. Unrecorded depreciation on equipment is $1850 b. The Supplies account has a balance of $5,000. Supplies on hand at the end of the period totaled $2,500, c On the date for preparing financial statements, an estimated utilities expense of $550 has been incurred, but no utility bill has been received. d. On the first day of the current month, rent for...
Adjusting entries affect at least one balance sheet account and at least one income statement account....
Adjusting entries affect at least one balance sheet account and at least one income statement account. For the entries below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the income statement account and which is the balance sheet account. Assume the company records prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. a. Entry to record consulting services performed but not yet billed (nor...
Of the six typical adjusting journal entries found in chapter three and described in a previous...
Of the six typical adjusting journal entries found in chapter three and described in a previous discussion, which of the six is likely to have the largest financial impact of a company's income statement? When we look a major corporation like Disney, General Motors or Federal Express, one of the AJES (adjusting journal entries) will have financial impact likely in the hundreds of million dollars. Which of the six is likely to have the largest financial impact of a company's...
Question 6 incomplete answer Marked out of 1.00 P Flag question Adjusting Entries for each of...
Question 6 incomplete answer Marked out of 1.00 P Flag question Adjusting Entries for each of the following unrelated situations, prepare the necessary adjusting entry in general journal form a. Unrecorded depreciation on equipment is $1,850 b. The Supplies account has a balance of 54,000. Supplies on hand at the end of the period totaled $2,500. c. On the date for preparing financial statements, an estimated utilities expense of $610 has been incurred, but no utility bill has been received...
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.
Adjusting entries affect at least one balance sheet account and at least one income statement account. For the entries below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the income statement account and which is the balance sheet account. Assume the company records prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. a. Entry to record revenue earned that was previously received as cash...
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
Preparing and Journalizing Adjusting Entries For each of the following separate situations, prepare the necessary adjustments (a) using the financial statement effects template and (b) in journal entry form. 1. Unrecorded depreciation on equipment is $1,220. 2. On the date for preparing financial statements, an estimated utilities expense of $780 has been incurred, but no utility bill has yet been received or paid. 3. On the first day of the current period, rent for four periods was paid and recorded...
help me with correct answers please
5) Adjusting entries often involve cash. 6) Adjusting entries are typically prepared on a weekly basis. _7) Accumulated Depreciation appears on the balance sheet as a liability account. 1 8) Net Income is a specific account in a company's chart of accounts. 9) A net loss results when assets are greater than liabilities. T 10) Reporting 10) Reporting revenues when they are earned and expenses when they are incurred is called accrual basis accounting....
The Malaise Company is recording adjusting journal entries. Which of the following adjusting entries will result in a decrease in assets and equity? The entry to record the earned portion of rent received in advance The entry to record accrued wages payable The entry to record a revenue earned but not yet received The entry to record the used portion of prepaid insurance The entry to record the payment of a dividend which was previously declared Lincoln Comnany
Adjusting Entries For each of the following unrelated situations, prepare the necessary adjusting entry in general journal form a. Unrecorded depreciation on equipment is $1850 b. The Supplies account has a balance of $5,000. Supplies on hand at the end of the period totaled $2,500, c On the date for preparing financial statements, an estimated utilities expense of $550 has been incurred, but no utility bill has been received. d. On the first day of the current month, rent for...
Adjusting entries affect at least one balance sheet account and at least one income statement account. For the entries below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the income statement account and which is the balance sheet account. Assume the company records prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. a. Entry to record consulting services performed but not yet billed (nor...
Of the six typical adjusting journal entries found in chapter three and described in a previous discussion, which of the six is likely to have the largest financial impact of a company's income statement? When we look a major corporation like Disney, General Motors or Federal Express, one of the AJES (adjusting journal entries) will have financial impact likely in the hundreds of million dollars. Which of the six is likely to have the largest financial impact of a company's...
Question 6 incomplete answer Marked out of 1.00 P Flag question Adjusting Entries for each of the following unrelated situations, prepare the necessary adjusting entry in general journal form a. Unrecorded depreciation on equipment is $1,850 b. The Supplies account has a balance of 54,000. Supplies on hand at the end of the period totaled $2,500. c. On the date for preparing financial statements, an estimated utilities expense of $610 has been incurred, but no utility bill has been received...
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