Record the adjusting entries for the given transactions on May 31, 2016. Adjusting Entries Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence. Rule of Debit and Credit: Debit - Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity . Credit - Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses. The following entry shows the adjusting entry for accrued fees unearned on May 31, 2016: Date Account Titles and Explanation Debit ($) Credit ($) May 31, 2016 Accounts Receivable 19,750 Fees earned 19,750 (To record the accounts receivable at the end of the year.) Table (1) The impact on the accounting equation for the above referred adjusting entry is as follows: { Assets(A) + $ 19 , 750 } = { Liabilities (L) + Equities (E) + $ 19 , 750 }
Record the adjusting entries for the given transactions on May 31, 2016. Adjusting Entries Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence. Rule of Debit and Credit: Debit - Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity . Credit - Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses. The following entry shows the adjusting entry for accrued fees unearned on May 31, 2016: Date Account Titles and Explanation Debit ($) Credit ($) May 31, 2016 Accounts Receivable 19,750 Fees earned 19,750 (To record the accounts receivable at the end of the year.) Table (1) The impact on the accounting equation for the above referred adjusting entry is as follows: { Assets(A) + $ 19 , 750 } = { Liabilities (L) + Equities (E) + $ 19 , 750 }
Solution Summary: The author records the adjusting entries for the given transactions on May 31, 2016. They are passed in the books of accounts at the end of one accounting period.
Record the adjusting entries for the given transactions on May 31, 2016.
Adjusting Entries
Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence.
Rule of Debit and Credit:
Debit - Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity.
Credit - Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses.
The following entry shows the adjusting entry for accrued fees unearned on May 31, 2016:
Date
Account Titles and Explanation
Debit ($)
Credit ($)
May 31, 2016
Accounts Receivable
19,750
Fees earned
19,750
(To record the accounts receivable at the end of the year.)
Table (1)
The impact on the accounting equation for the above referred adjusting entry is as follows:
The industrial enterprise "HUANG S.A." purchased a sorting and packaging machine from a foreign company on 1/4/2017 at a cost of €500,000. The useful life of the machine was estimated by the Management at ten (10) years, while the residual value was estimated at zero.
For the transportation of the machine from abroad to the company's factory, the amount of €20,000 was paid on 15/4/2017. As the insurance coverage of the machine during transportation was the responsibility of the selling company, HUANG S.A. proceeded to insure the machine from 16/4/2017 to 15/4/2018, paying the amount of €1,200. The delivery took place on 15/4/2017.
As adequate ventilation of the multifunction device is essential for its proper operation, the company fitted an air duct on the multifunction device. The cost of the air duct amounted to €2,000 and was paid on 20/4/2017. On 25/4/2017, an external electrician was paid €5,000 for the electrical connection of the device.
The company also paid €5,000 to an…
The industrial enterprise "HUANG S.A." purchased a sorting and packaging machine from a foreign company on 1/4/2017 at a cost of €500,000. The useful life of the machine was estimated by the Management at ten (10) years, while the residual value was estimated at zero.
For the transportation of the machine from abroad to the company's factory, the amount of €20,000 was paid on 15/4/2017. As the insurance coverage of the machine during transportation was the responsibility of the selling company, HUANG S.A. proceeded to insure the machine from 16/4/2017 to 15/4/2018, paying the amount of €1,200. The delivery took place on 15/4/2017.
As adequate ventilation of the multifunction device is essential for its proper operation, the company fitted an air duct on the multifunction device. The cost of the air duct amounted to €2,000 and was paid on 20/4/2017. On 25/4/2017, an external electrician was paid €5,000 for the electrical connection of the device.
The company also paid €5,000 to an…
I need answer typing clear urjent no chatgpt used pls i will give 5 Upvotes.only typing .
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.