You are the bookkeeper for a small but thriving business. You have asked the owner for the information you need to make adjusting entries for depreciation, supplies , insurance, and wages. He says that he's really busy and that what you've done so far is "close enough". Explain the need for adjusting entries and their effect on the owner's balance sheet and the "bottom line" of the income statement.

Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to…

Answered: You are the bookkeeper for a small but…

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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You are the bookkeeper for a small but thriving business. You have asked the owner for the information you need to make adjusting entries for depreciation, supplies , insurance, and wages. He says that he's really busy and that what you've done so far is "close enough". Explain the need for adjusting entries and their effect on the owner's balance sheet and the "bottom line" of the income statement.

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