Four types of adjusting entries were identified in this chapter:
Type I | Converting Assets to Expenses |
Type II | Converting Liabilities to Revenue |
Type III | Accruing Unpaid Expenses |
Type IV | Accruing Uncollected Revenue |
Complete the following table by indicating the effect of each adjusting entry type on the major elements of the income statement and balance sheet. Use the symbols I for increase, D for decrease, and NE for no effect.
| Income Statement | Balance Sheet | ||||
Adjustment Type | Revenue | Expenses | Net Income | Assets | Liabilities | Owners’ Equity |
Type 1 |
|
|
|
|
|
|
Type II |
|
|
|
|
|
|
Type III |
|
|
|
|
|
|
Type IV |
|
|
|
|
|
|
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.