Accrued Revenue: As per the accrual concept of accounting all expenses and revenue of the business should be recorded in the period of their occurrence irrespective of the involvement of cash. Accrued Revenue is the revenue of the business which has been earned but not yet received at the end of accounting period. It is treated as an asset (receivable) for the business. 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. To record: The given transaction as the adjustment entry for accrued revenues.

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Answer 1

Question

Chapter 3, Problem 3.5APE

To determine

Accrued Revenue:

As per the accrual concept of accounting all expenses and revenue of the business should be recorded in the period of their occurrence irrespective of the involvement of cash. Accrued Revenue is the revenue of the business which has been earned but not yet received at the end of accounting period. It is treated as an asset (receivable) for the business.

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.

To record: The given transaction as the adjustment entry for accrued revenues.

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Answer 2

Question

Chapter 3, Problem 3.5APE

To determine

Accrued Revenue:

As per the accrual concept of accounting all expenses and revenue of the business should be recorded in the period of their occurrence irrespective of the involvement of cash. Accrued Revenue is the revenue of the business which has been earned but not yet received at the end of accounting period. It is treated as an asset (receivable) for the business.

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.

To record: The given transaction as the adjustment entry for accrued revenues.

Expert Solution & Answer

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Answer 3

Question

Chapter 3, Problem 3.5APE

To determine

Accrued Revenue:

As per the accrual concept of accounting all expenses and revenue of the business should be recorded in the period of their occurrence irrespective of the involvement of cash. Accrued Revenue is the revenue of the business which has been earned but not yet received at the end of accounting period. It is treated as an asset (receivable) for the business.

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.

To record: The given transaction as the adjustment entry for accrued revenues.

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Answer 4

Question

Chapter 3, Problem 3.5APE

To determine

Accrued Revenue:

As per the accrual concept of accounting all expenses and revenue of the business should be recorded in the period of their occurrence irrespective of the involvement of cash. Accrued Revenue is the revenue of the business which has been earned but not yet received at the end of accounting period. It is treated as an asset (receivable) for the business.

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.

To record: The given transaction as the adjustment entry for accrued revenues.

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Answer 5

Chapter 3, Problem 3.5APE

To determine

Accrued Revenue:

As per the accrual concept of accounting all expenses and revenue of the business should be recorded in the period of their occurrence irrespective of the involvement of cash. Accrued Revenue is the revenue of the business which has been earned but not yet received at the end of accounting period. It is treated as an asset (receivable) for the business.

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.

To record: The given transaction as the adjustment entry for accrued revenues.

Answer 6

Chapter 3, Problem 3.5APE

To determine

Accrued Revenue:

As per the accrual concept of accounting all expenses and revenue of the business should be recorded in the period of their occurrence irrespective of the involvement of cash. Accrued Revenue is the revenue of the business which has been earned but not yet received at the end of accounting period. It is treated as an asset (receivable) for the business.

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.

To record: The given transaction as the adjustment entry for accrued revenues.

Answer 7

Chapter 3, Problem 3.5APE

To determine

Accrued Revenue:

As per the accrual concept of accounting all expenses and revenue of the business should be recorded in the period of their occurrence irrespective of the involvement of cash. Accrued Revenue is the revenue of the business which has been earned but not yet received at the end of accounting period. It is treated as an asset (receivable) for the business.

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.

To record: The given transaction as the adjustment entry for accrued revenues.

Answer 8

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Answer 11

Ch. 3 - How are revenues and expenses reported on the...Ch. 3 - Is the matching concept related to (A) the cash...Ch. 3 - Why are adjusting entries needed at the end of an...Ch. 3 - What is the difference between adjusting entries...Ch. 3 - Identify the four different categories of...Ch. 3 - If the effect of the debit portion of an adjusting...Ch. 3 - If the effect of the credit portion of an...Ch. 3 - Does every adjusting entry have an effect on...Ch. 3 - Prob. 9DQ Ch. 3 - (A) Explain the purpose of the two accounts:...

Solution Summary: The author explains that accrued revenue should be recorded in the period of their occurrence irrespective of the involvement of cash.

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