Chapter 3, Problem 3.1FSC

1

To determine

Adjusting entries

Adjusting entries are those entries which are made at the end of the accounting period, to record the revenues in the period of which they have been earned and to record the expenses in the period of which have been incurred, as well as to update all the balances of assets and liabilities accounts on the balance sheet, and to ascertain accurate amount of net income (loss) on the income statement to maintain the records according to the accrual basis principle.

To identify: The asset accounts of Corporation T which might have adjustments.

2

To determine

To identify: The liabilities accounts of Corporation T which might have adjustments.

3

To determine

To identify: The way in which Property, Plant, and Equipment are reported on the balance sheet.