Instructions: Below are terms pertinent to adjusting entries. Match each definition with its related term. Write your answer on the space provided. Terms Definifions/Transacions 1 Accrued Expense 2 Deferred Expense Revenues not yet earned, collected in advance. Ofice supplies on hand, used next accounting period. Rentrevenue collected, not yet earned. d. Rent not yet collected, already earned. An expense incurred, not yet paid or recorded. Revenue earned, not yer collected. An expense not yet incurred, paid in advance. h. Property taxes incurred, not yet paid. At the end of the year, slaries payable of P3,600 had not been recorded or paid. į Supplies for office use were purchased during the year for P500, and P100 of the ofice supplies remained on hand (unused) at year-end. k. Interest of P250 on a note receivable was earned at year-end, altfhough collecion of the interest is not due unfil the following year. Atthe end of the year, service revenues of P2,000 was collected in cash but was not yet earned. m. An expense that is unpaid and unrecorded. a. b. 3 Accrued Revenue C. 4 Deferred Revenue e. g. i.

Instructions: Below are terms pertinent to adjusting entries. Match each definition with its related term. Write your answer on the space provided. Terms Definifions/Transacions 1 Accrued Expense 2 Deferred Expense Revenues not yet earned, collected in advance. Ofice supplies on hand, used next accounting period. Rentrevenue collected, not yet earned. d. Rent not yet collected, already earned. An expense incurred, not yet paid or recorded. Revenue earned, not yer collected. An expense not yet incurred, paid in advance. h. Property taxes incurred, not yet paid. At the end of the year, slaries payable of P3,600 had not been recorded or paid. į Supplies for office use were purchased during the year for P500, and P100 of the ofice supplies remained on hand (unused) at year-end. k. Interest of P250 on a note receivable was earned at year-end, altfhough collecion of the interest is not due unfil the following year. Atthe end of the year, service revenues of P2,000 was collected in cash but was not yet earned. m. An expense that is unpaid and unrecorded. a. b. 3 Accrued Revenue C. 4 Deferred Revenue e. g. i.

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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Prepare adjusting journal entries, as needed, considering the account balances excerpted fromthe unadjusted trial balance and the adjustment data. A. depreciation on fixed assets, $ 8,500B. unexpired prepaid rent, $12,500C. remaining balance of unearned revenue, $555
"Classify the following adjusting entries as involving prepaid expenses (PE), unearned revenues (UR), accrued expenses (AE), or accrued revenues (AR). a. To record revenue earned that was previously received as cash in advance. b. To record wages expense incurred but not yet paid (nor recorded). C. To record revenue earned but not yet billed (nor recorded). d. To record expiration of prepaid insurance. е. To record annual depreciation expense"
Which of the following accounts could be part of a regular journal entry, an adjusting entry, a closing entry, and a reversing entry? interest revenue account receivable depreciation expense unearned revenue prepaid insurance
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GIVE A DETAILED ANSWER Describe the effect on the financial statements when an adjustment is prepared that records (a) unrecorded revenue and (b) unrecorded expense. On the basis of what you have learned about adjustments, why do you think that adjusting entries are made on the last day of the accounting period rather than at several times during the accounting period?