### Reversing Entries: Determining the Need for Reversing Entries**Objective:**Identify which adjusting entries made at the end of an accounting period are to be reversed at the beginning of the following period.**Task:**Analyze the following four adjusting entries made on December 31 and determine whether a reversing entry is needed.**Adjusting Entries:**| Date | Description | Debit | Credit | Reversing Entry Necessary | Reversing Entry Not Necessary ||-----------|-----------------------|--------|--------|----------------------------|--------------------------------|| Dec. 31 | Utilities Expense | $565 | | | || | Utilities Payable | | $565 | ○ | ○ || 31 | Deferred Rent Revenue | $1,550 | | | || | Rent Revenue | | $1,550 | ○ | ○ || 31 | Advertising Expense | $450 | | | || | Prepaid Advertising | | $450 | ○ | ○ || 31 | Taxes Expense | $1,750 | | | || | Taxes Payable | | $1,750 | ○ | ○ |#### Notes:- A reversing entry is an entry made at the beginning of the reporting period to reverse or cancel adjusting journal entries made at the end of the previous period.- Reversing entries are optional and are generally performed to simplify the recording of transactions in the new period. ##### Detailed Instructions:1. **Identify Adjustments:** - Assess the nature of each adjusting entry. - Determine if the entry involves accruals or deferrals.2. **Determine Reversibility:** - If the entry involves accrued expenses or revenues (like Utilities Payable or Rent Revenue), a reversing entry is usually necessary. - For entries involving prepayments (such as Advertising Expense or Prepaid Advertising), it could depend on company policy or specific use cases.3. **Mark Necessity:** - Indicate in the appropriate column ("Reversing Entry Necessary" or "Reversing Entry Not Necessary").##### Practical Example: Consider the adjusting entry for Utilities Expense of $565 and Utilities Payable of $565. Since this involves an accrued expense

Adjustment entries are the same as the journal entries with the only difference being that it is…

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 Description Debit Credit Reversing entry Reversing entry necessary not necessary Dec. 31 Utilities Expense 565 565 1,550 1,550 450 450 1,750 O 1,750 S ? Utilities Payable 31 Deferred Rent Revenue Rent Revenue 31 Advertising Expense 31 Taxes Expense Prepaid Advertising Taxes Payable O O O X

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 Description Debit Credit Reversing entry Reversing entry necessary not necessary Dec. 31 Utilities Expense 565 565 1,550 1,550 450 450 1,750 O 1,750 S ? Utilities Payable 31 Deferred Rent Revenue Rent Revenue 31 Advertising Expense 31 Taxes Expense Prepaid Advertising Taxes Payable O O O X

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter5: Adjusting Entries And The Work Sheet

Section: Chapter Questions

Problem 16SPA: JOURNALIZE AND POST ADJUSTING ENTRIES FROM THE WORK SHEET Refer to Problem 5-15A and the following...

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Hello! I need some help with accounting. I need to jurnalize the adjusting entries. Journalism the adjustments in the order given in the question. General Jurnal Date description. Post debit credit 20-- adjusting entries Mar.31 ______ ______ Mar.31 ______ ______ Mar.31 ______ ______ Mar31 ______ ______ Mar.31 ______ ______ Mar.31 ______ ______ Then I must prepare an income statement
What is keying? Im O Sorting account balances from the adjusted trial balance to their proper financial state O Adding initials to each work sheet column total to indicate that a verification took place O Adding an identifying letter to link the debit and the credit of an adjustment in the Adju O Totaling the two columns of the Adjusted Trial Balance to verify that debits equal credit
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For journal entries 1through 12, indicate the explanation that most closely describes it. You can use explanations more than once. A. To record receipt of unearned revenue. B. To record this period's earning of prior unearned revenue. C. To record payment of an accrued expense. D. To record receipt of an accrued revenue. E. To record an accrued expense. F. To record an accrued revenue. G. To record this period's use of a prepaid expense. H. To record payment of a prepaid expense. 1. To record this period's depreciation expense.
the best answer for the question. 9. The adjusting entries made at the end of an accounting period may be classified into four principal types. Which of the following classifications of accounts are not ow O A. Accrued expenses O B. Cost apportionments O C. Temporary accounts O D. Revenue apportionments O Mark for review (Will be highlighted on the review page) >>> O ii 9 C 7 INPUT
From the adjusting entries below, prepare the reversing entry(ies) that would be needed for January 1. GENERAL JOURNALPage 1 DateDescriptionPostRef. DebitCreditAdjusting EntriesDec.31Work in Process Inventory17,333.00Factory Overhead17,333.0031Interest Receivable2,367.00Interest Revenue2,367.0031Office Supplies Expense6,319.00Office Supplies6,319.0031Factory Overhead15,841.00Factory Supplies15,841.0031Bad Debt Expense4,320.00Allowance for Bad Debts4,320.0031Factory Overhead1,927.00Prepaid Insurance1,927.0031Factory Overhead6,210.00Accumulated Depreciation—FactoryBuilding6,210.0031Factory Overhead14,253.00Accumulated Depreciation—FactoryEquipment14,253.00
REVERSING ENTRIES From the work sheet used in Exercise 15-5A, identify the adjusting entry(ies) that should be reversed and prepare the reversing entry(ies).
ssignments x signment/assignmentOverview.do?filterMode=all&studentCourseSelector=199635 9 Cookie Graces Sady Teels Final Which of the following has the steps of the accounting cycle in the proper sequence? (Some Score steps may be missing.) Attempt a. analyze and record transactions, post transaction to the ledger prepare a trial balance, prepare financial statements, journalize closing entries, analyze adjustment data and prepare adjusting Score entries b. prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries C. prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger analyze and record transactions, post transactions to the ledger Commen d. analyze and record transactions, post transactions to the ledger, prepare a…
Requirements Sheet in Workbook Requirement 1—Prepare the Journal Entries in the General Journal Journal Entries Requirement 2—Post Journal Entries to the General Ledger General Ledger Requirement 3—Prepare a Trial Balance Trial Balance Requirement 4—Prepare the Adjusting Entries Adjusting Entries Requirement 5—Post Adjusting Entries to the General Ledger General Ledger Requirement 6—Prepare an Adjusted Trial Balance Adjusted Trial Balance Requirement 7—Prepare the Financial Statements Financial Statements Requirement 8—Prepare the Closing Entries Closing Entries Requirement 9—Post Closing Entries to the General Ledger General Ledger Requirement 10—Prepare the Post Closing Trial Balance Post-Closing Trial Balance During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed the following transactions. July 1 Began business by making a deposit in a company…
17. In preparing closing entries, which of the following columns of the work sheet are the most helpful? a. Adjustments columns b. Adjusted Trial Balance columns c. Income Statement columns d. Balance Sheet columns 18. The primary objective of reversing entries is to a. correct errorss. b. simplify the bookkeeping associated with accruals from the prior period. c. transfer the balance of the expense accounts to the Owner's Capital account and set the accounts equal to zero. d. place the expenses for the current period in the proper accounts. 19. Which of the following comes last in the accounting process? a. Preparation of a post-closing trial balance b. Preparation of an adjusted trial balance c. Worksheet preparation d. Journalizing external transactions 20. Which of the following accounts will appear on the post-closing trial balance? a. Building b. Depreciation expense - building c. Owner's withdrawals d. Service revenues
Closing entries prepare the general ledger for use during the next accounting period. Select one: True False
REVERSING ENTRIES From the spreadsheet used in Exercise 15-5A, identify the adjusting entry(ies) that should be reversed and prepare the reversing entry(ies).