Chapter 2, Problem 2.10E

1.

To determine

Adjusting entries:

Adjusting entries are the journal entries, which are recorded at the end of the accounting period to correct or adjust the revenue and expense accounts, to concede with the accrual principle of accounting.

Accounting rules for journal/adjusting entries:

• To record increase balance of account: Debit assets, expenses, losses and credit liabilities, capital, revenue and gains.
• To record decrease balance of account: Credit assets, expenses, losses and debit liabilities, capital, revenue and gains.

To Determine: The interest rate on the company’s note payable.

2.

To determine

The beginning of the month at which the payment of rent was made.

3.

To determine

The amount lent to its customer by Corporation E on October 31.