Chapter 3, Problem 7E

To determine

Adjusting entries: Adjusting entries are those entries which are made at the end of the period 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

Accounting rules for journal entries:

• To increase balance: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.
• To decrease balance: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To determine: Adjusting entries for the agency P on March 31.