Which of the following journals would correctly post an adjustment for deferred (prepaid) income? Select one: A. DR Income ACcount / CR Asset B. DR Asset / CR Income Account C. DR Income Account / CR Deferred Income D. DR Deferred income / CR Income Account

Which of the following journals would correctly post an adjustment for deferred (prepaid) income? Select one: A. DR Income ACcount / CR Asset B. DR Asset / CR Income Account C. DR Income Account / CR Deferred Income D. DR Deferred income / CR Income Account

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: When you need to adjust the allowance what is the accounting entry you would create assuming you use…

A: Accrual method of accounting is a method which states that income and expense should be recorded…

Q: Which of the following accounts is considered a permanent or real account?A. Interest RevenueB.…

A: Financial Statements: Financial statements are an assortment of outline-level reports about an…

Q: Which of the following will appear on the credit side of a trial balance?

A: Fixed assets (like buildings, machinery, etc.) would typically appear on the debit side of the trial…

Q: For each of the following accounts, identify if it is nominal/temporary or real/permanent: Fees…

A: Permanent accounts are those accounts whose balance at the end of a given period (generally at the…

Q: What is the Unearned service revenue in the adjusted trial balance columns of worksheet?

A: Balance sheet represents the financial position of the company that involve the assets, liabilities,…

Q: What is the Rent Expense in the adjusted trial balance columns of worksheet? A. Income statement…

A: The financial statements of the business include the cash flow statement, income statement and…

Q: Failure to prepare an adjusting entry at the end of the period to record an accured expense would…

A: A successful adjusting entry at the end of the period to record an accrued expense would: Increase…

Q: The adjusting entry to account for estimated customer returns and allowances involves a a. credit to…

A: Sales returns means goods being returned by customer. Sales allowances means reductions are being…

Q: income recieved but service not rendered, Please suggest the JE

A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…

Q: if a trial balance or income state, etc... is post-closing, unadjusted, or adjusted?

A: Trail balance is prepared by the company with an aim to know and verify that the posting entries…

Q: Difference between deferral of expenses/revenue and accrued expenses/ revenue?

A: The business adjust the profits of the business for the current year considering deferred and…

Q: why adjusting of the income statement, and give three examples of items that are recasted?

A: The company prepares the Income statement to know the net income or losses that arise during the…

Q: Accrual adjustments pair: Multiple Choice assets with expenses, liabilities with revenues. assets…

A: Asset like prepaid expense can be accrued and expensed. Liability like unearned revenue can be…

Q: how do you do an adjusted trial balance sheet to it?

A: Adjusted Trial Balance - Adjusted Trial Balance is a Summary of all the ledgers after posting…

Q: What is the purpose of the other adjustments account (OAA)? What types of items increase it or…

A: Answer: As per given - What is the purpose of the accumulated adjustments account (AAA)? What types…

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Which of the following journals would correctly post an adjustment for deferred (prepaid)
income? Select one:
A. DR Income Account / CR Asset
B. DR Asset / CR Income Account
C. DR Income Account / CR Deferred Income
D. DR Deferred income / CR Income Account

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Solution

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The Income Summary account appears on the statement of financial position. O appears on the income statement. O is a temporary account. O is a permanent account.
Rent paid in advance can be categorized as a. Deferred expense (Prepaid expense) b. Accrued revenue c. Deferred revenue (Unearned revenue) d. Accrued expense
transactions that require an adjusting entry (debit) to unearned revenue?
Do adjusting entries affect income statement accounts, bal-ance sheet accounts, or both? Explain.
If a payment of a deferred expense was recorded under the alternative treatment, what account would be debited in the adjusting entry?
If the adjustment for unearned revenues is not recorded O a. net income will be correctly stated. O b. net income will be understated. O c. liabilities will be understated. O d. assets will be overstated.
Explain an example to record the adjusting entry for accrued revenue.
Classify each of the following items as revenues (R), expenses (EX), or withdrawals (W). Rental revenue
Reversing entries are used in income collected in advance when the | point adjusting entry has a Debit to an asset Debit to a Liabilty credit to Expense Credit to Income
Match the statements below with the accounting assumption, characteristic, or principle to which the statement relates. Assumptions/characteristics/principles may be used once, more than once, or not at all. Recorded when the performance obligation is satisfied. a. Revenue recognition principle V The reason for recording accruals and deferrals in adjusting entries. b. Matching principle Valuing assets at amounts originally paid for them. C. Historical cost principle Entity assumed to have a long life d. Going concern assumption Description of significant accounting policies and unusual events. e. Full disclosure principle v Information has predictive and confirmatory value. T. Relevance characteristic 8. Consistency characteristic
A prior period adjustment relates to the income of pastaccounting periods. Explain how such an item is shown inthe financial statements.
Which of the following is not a category of adjusting entries? Question 27 options: Accruals. Estimates. Invoicing. Prepayments.