Determine the effect or recording each of the six types of adjusting entries on the accounting equation. Use I for increase, D For decrease and NE for NO Effect. Assets= liabilities+ equity 1. Depreciation 2. Prepaid Expenses 3. Accrued expenses 4. Deferred revenue 5. Accrued revenues

Determine the effect or recording each of the six types of adjusting entries on the accounting equation. Use I for increase, D For decrease and NE for NO Effect. Assets= liabilities+ equity 1. Depreciation 2. Prepaid Expenses 3. Accrued expenses 4. Deferred revenue 5. Accrued revenues

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Determine the effect or recording each of the six types of adjusting entries on the accounting equation. Use I for increase, D For decrease and NE for NO Effect.

Assets=

liabilities+

equity

1. Depreciation

2. Prepaid Expenses

3. Accrued expenses

4. Deferred revenue

5. Accrued revenues

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