Adjustment entries : Adjusting entries are those entries which are made at the end of the year to update the all balances in the financial statements to show the true financial information and to maintain the records according to accrual basis principle. Accrual basis principle: According to this principle of accounting, revenue should be recognized at the time when it is earned, doesn’t matter, it is received or not and expense should be recognized when it is incurred, doesn’t matter it is paid or not. To determine: Adjustment entries for following accounts: (a) Supplies are on hand $700. (b) Unearned service revenue of $3,000.

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Answer 1

Question

Chapter 3, Problem 11BE

To determine

Adjustment entries: Adjusting entries are those entries which are made at the end of the year to update the all balances in the financial statements to show the true financial information and to maintain the records according to accrual basis principle.

Accrual basis principle: According to this principle of accounting, revenue should be recognized at the time when it is earned, doesn’t matter, it is received or not and expense should be recognized when it is incurred, doesn’t matter it is paid or not.

To determine: Adjustment entries for following accounts:

(a) Supplies are on hand $700.

(b) Unearned service revenue of $3,000.

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Answer 2

Question

Chapter 3, Problem 11BE

To determine

Adjustment entries: Adjusting entries are those entries which are made at the end of the year to update the all balances in the financial statements to show the true financial information and to maintain the records according to accrual basis principle.

Accrual basis principle: According to this principle of accounting, revenue should be recognized at the time when it is earned, doesn’t matter, it is received or not and expense should be recognized when it is incurred, doesn’t matter it is paid or not.

To determine: Adjustment entries for following accounts:

(a) Supplies are on hand $700.

(b) Unearned service revenue of $3,000.

Expert Solution & Answer

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Answer 3

Question

Chapter 3, Problem 11BE

To determine

Adjustment entries: Adjusting entries are those entries which are made at the end of the year to update the all balances in the financial statements to show the true financial information and to maintain the records according to accrual basis principle.

Accrual basis principle: According to this principle of accounting, revenue should be recognized at the time when it is earned, doesn’t matter, it is received or not and expense should be recognized when it is incurred, doesn’t matter it is paid or not.

To determine: Adjustment entries for following accounts:

(a) Supplies are on hand $700.

(b) Unearned service revenue of $3,000.

Expert Solution & Answer

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Answer 4

Question

Chapter 3, Problem 11BE

To determine

Adjustment entries: Adjusting entries are those entries which are made at the end of the year to update the all balances in the financial statements to show the true financial information and to maintain the records according to accrual basis principle.

Accrual basis principle: According to this principle of accounting, revenue should be recognized at the time when it is earned, doesn’t matter, it is received or not and expense should be recognized when it is incurred, doesn’t matter it is paid or not.

To determine: Adjustment entries for following accounts:

(a) Supplies are on hand $700.

(b) Unearned service revenue of $3,000.

Expert Solution & Answer

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Answer 5

Chapter 3, Problem 11BE

To determine

Adjustment entries: Adjusting entries are those entries which are made at the end of the year to update the all balances in the financial statements to show the true financial information and to maintain the records according to accrual basis principle.

Accrual basis principle: According to this principle of accounting, revenue should be recognized at the time when it is earned, doesn’t matter, it is received or not and expense should be recognized when it is incurred, doesn’t matter it is paid or not.

To determine: Adjustment entries for following accounts:

(a) Supplies are on hand $700.

(b) Unearned service revenue of $3,000.

Answer 6

Chapter 3, Problem 11BE

To determine

Adjustment entries: Adjusting entries are those entries which are made at the end of the year to update the all balances in the financial statements to show the true financial information and to maintain the records according to accrual basis principle.

Accrual basis principle: According to this principle of accounting, revenue should be recognized at the time when it is earned, doesn’t matter, it is received or not and expense should be recognized when it is incurred, doesn’t matter it is paid or not.

To determine: Adjustment entries for following accounts:

(a) Supplies are on hand $700.

(b) Unearned service revenue of $3,000.

Answer 7

Chapter 3, Problem 11BE

To determine

Adjustment entries: Adjusting entries are those entries which are made at the end of the year to update the all balances in the financial statements to show the true financial information and to maintain the records according to accrual basis principle.

Accrual basis principle: According to this principle of accounting, revenue should be recognized at the time when it is earned, doesn’t matter, it is received or not and expense should be recognized when it is incurred, doesn’t matter it is paid or not.

To determine: Adjustment entries for following accounts:

(a) Supplies are on hand $700.

(b) Unearned service revenue of $3,000.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 3 - Prob. 1Q Ch. 3 - Prob. 2Q Ch. 3 - Prob. 3Q Ch. 3 - Prob. 4Q Ch. 3 - Prob. 5Q Ch. 3 - Prob. 6Q Ch. 3 - 7. Why may a trial balance not contain up-to-date...Ch. 3 - Prob. 8Q Ch. 3 - Prob. 9Q Ch. 3 - Prob. 10Q

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