LO 4.2 What two accounts are affected by the needed adjusting entries? supplies actual counts are lower than account balance employee salaries are due but not paid at year end insurance premiums that were paid in advance have expired

LO 4.2 What two accounts are affected by the needed adjusting entries? supplies actual counts are lower than account balance employee salaries are due but not paid at year end insurance premiums that were paid in advance have expired

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

LO 4.2 What two accounts are affected by the needed adjusting entries?

supplies actual counts are lower than account balance
employee salaries are due but not paid at year end
insurance premiums that were paid in advance have expired

Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.

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