Identify the name of end-of-period journal entry that reflects the accrual accounting.

Question

Want to see more full solutions like this?

Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 1MC

To determine

Identify the name of end-of-period journal entry that reflects the accrual accounting.

Expert Solution & Answer

Answer to Problem 1MC

Option b

Explanation of Solution

Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to update the income statement accounts (revenue and expenses) and balance sheet accounts (assets, liabilities, and stockholders’ equity) to maintain the records according to accrual basis principle.

Justification for correct answer:

Option (b): Adjusting entries (also known as end of period adjustments) are journal entries that are made at the end of an accounting period to adjust the accounts to accurately reflect the revenues and expenses of the current period.

Justification for incorrect answers:

Option (a): Post journal entries is the course of transferring recorded business events from the general journal to the ledger. Therefore, option (a) is incorrect.

Option (c): Erroneous journal entry is made to fix the error that has been recorded. Therefore, option (c) is incorrect.

Option (d): Compound journal entry is an accounting entry that has more than one debit, more than one credit. Therefore, option (d) is incorrect.

Conclusion

Hence, Option (b) is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

The Converting Department of Felton Industries had 1,500 units in work in process at the beginning of the period, which were 25% complete. During the period, 18,000 units were completed and transferred to the Packaging Department. There were 1,200 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs.

Can you help me solve this general accounting question using the correct accounting procedures?

Isabella Manufacturing computes its plantwide predetermined overhead rate annually based on direct labor hours. At the beginning of the year, it was estimated that 45,000 direct labor hours would be required for the period's estimated level of production. The company also estimated $540,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.25 per direct labor hour. Isabella's actual manufacturing overhead cost for the year was $725,500, and its actual total direct labor hours were 46,200. Compute the company's plant-wide predetermined overhead rate for the year.

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 1MC

To determine

Identify the name of end-of-period journal entry that reflects the accrual accounting.

Expert Solution & Answer

Answer to Problem 1MC

Option b

Explanation of Solution

Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to update the income statement accounts (revenue and expenses) and balance sheet accounts (assets, liabilities, and stockholders’ equity) to maintain the records according to accrual basis principle.

Justification for correct answer:

Option (b): Adjusting entries (also known as end of period adjustments) are journal entries that are made at the end of an accounting period to adjust the accounts to accurately reflect the revenues and expenses of the current period.

Justification for incorrect answers:

Option (a): Post journal entries is the course of transferring recorded business events from the general journal to the ledger. Therefore, option (a) is incorrect.

Option (c): Erroneous journal entry is made to fix the error that has been recorded. Therefore, option (c) is incorrect.

Option (d): Compound journal entry is an accounting entry that has more than one debit, more than one credit. Therefore, option (d) is incorrect.

Conclusion

Hence, Option (b) is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 1MC

To determine

Identify the name of end-of-period journal entry that reflects the accrual accounting.

Expert Solution & Answer

Answer to Problem 1MC

Option b

Explanation of Solution

Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to update the income statement accounts (revenue and expenses) and balance sheet accounts (assets, liabilities, and stockholders’ equity) to maintain the records according to accrual basis principle.

Justification for correct answer:

Option (b): Adjusting entries (also known as end of period adjustments) are journal entries that are made at the end of an accounting period to adjust the accounts to accurately reflect the revenues and expenses of the current period.

Justification for incorrect answers:

Option (a): Post journal entries is the course of transferring recorded business events from the general journal to the ledger. Therefore, option (a) is incorrect.

Option (c): Erroneous journal entry is made to fix the error that has been recorded. Therefore, option (c) is incorrect.

Option (d): Compound journal entry is an accounting entry that has more than one debit, more than one credit. Therefore, option (d) is incorrect.

Conclusion

Hence, Option (b) is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 1MC

To determine

Identify the name of end-of-period journal entry that reflects the accrual accounting.

Expert Solution & Answer

Answer to Problem 1MC

Option b

Explanation of Solution

Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to update the income statement accounts (revenue and expenses) and balance sheet accounts (assets, liabilities, and stockholders’ equity) to maintain the records according to accrual basis principle.

Justification for correct answer:

Option (b): Adjusting entries (also known as end of period adjustments) are journal entries that are made at the end of an accounting period to adjust the accounts to accurately reflect the revenues and expenses of the current period.

Justification for incorrect answers:

Option (a): Post journal entries is the course of transferring recorded business events from the general journal to the ledger. Therefore, option (a) is incorrect.

Option (c): Erroneous journal entry is made to fix the error that has been recorded. Therefore, option (c) is incorrect.

Option (d): Compound journal entry is an accounting entry that has more than one debit, more than one credit. Therefore, option (d) is incorrect.

Conclusion

Hence, Option (b) is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 3, Problem 1MC

To determine

Identify the name of end-of-period journal entry that reflects the accrual accounting.

Expert Solution & Answer

Answer to Problem 1MC

Option b

Explanation of Solution

Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to update the income statement accounts (revenue and expenses) and balance sheet accounts (assets, liabilities, and stockholders’ equity) to maintain the records according to accrual basis principle.

Justification for correct answer:

Option (b): Adjusting entries (also known as end of period adjustments) are journal entries that are made at the end of an accounting period to adjust the accounts to accurately reflect the revenues and expenses of the current period.

Justification for incorrect answers:

Option (a): Post journal entries is the course of transferring recorded business events from the general journal to the ledger. Therefore, option (a) is incorrect.

Option (c): Erroneous journal entry is made to fix the error that has been recorded. Therefore, option (c) is incorrect.

Option (d): Compound journal entry is an accounting entry that has more than one debit, more than one credit. Therefore, option (d) is incorrect.

Conclusion

Hence, Option (b) is the correct answer.

Answer 6

Chapter 3, Problem 1MC

To determine

Identify the name of end-of-period journal entry that reflects the accrual accounting.

Expert Solution & Answer

Answer to Problem 1MC

Option b

Explanation of Solution

Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to update the income statement accounts (revenue and expenses) and balance sheet accounts (assets, liabilities, and stockholders’ equity) to maintain the records according to accrual basis principle.

Justification for correct answer:

Option (b): Adjusting entries (also known as end of period adjustments) are journal entries that are made at the end of an accounting period to adjust the accounts to accurately reflect the revenues and expenses of the current period.

Justification for incorrect answers:

Option (a): Post journal entries is the course of transferring recorded business events from the general journal to the ledger. Therefore, option (a) is incorrect.

Option (c): Erroneous journal entry is made to fix the error that has been recorded. Therefore, option (c) is incorrect.

Option (d): Compound journal entry is an accounting entry that has more than one debit, more than one credit. Therefore, option (d) is incorrect.

Conclusion

Hence, Option (b) is the correct answer.

Answer 7

Chapter 3, Problem 1MC

To determine

Identify the name of end-of-period journal entry that reflects the accrual accounting.

Answer 8

Expert Solution & Answer

Answer to Problem 1MC

Option b

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to update the income statement accounts (revenue and expenses) and balance sheet accounts (assets, liabilities, and stockholders’ equity) to maintain the records according to accrual basis principle.

Justification for correct answer:

Option (b): Adjusting entries (also known as end of period adjustments) are journal entries that are made at the end of an accounting period to adjust the accounts to accurately reflect the revenues and expenses of the current period.

Justification for incorrect answers:

Option (a): Post journal entries is the course of transferring recorded business events from the general journal to the ledger. Therefore, option (a) is incorrect.

Option (c): Erroneous journal entry is made to fix the error that has been recorded. Therefore, option (c) is incorrect.

Option (d): Compound journal entry is an accounting entry that has more than one debit, more than one credit. Therefore, option (d) is incorrect.

Answer 12

Conclusion

Hence, Option (b) is the correct answer.

Answer 13

Ch. 3 - Prob. 1MC Ch. 3 - Prob. 2MC Ch. 3 - Prob. 3MC Ch. 3 - Prob. 4MC Ch. 3 - Prob. 5MC Ch. 3 - Prob. 1Q Ch. 3 - Prob. 2Q Ch. 3 - Prob. 3Q Ch. 3 - Prob. 4Q Ch. 3 - Prob. 5Q

Identify the name of end-of-period journal entry that reflects the accrual accounting.

Concept explainers

Videos

Identify the name of end-of-period journal entry that reflects the accrual accounting.

Answer to Problem 1MC

Explanation of Solution

Want to see more full solutions like this?

Chapter 3 Solutions