
Concept explainers
Adjusting
The journal entries to recognize the revenue earned and expenses incurred during a specified accounting period is called adjusting entries. The adjusting entries are basically classified into two categories; deferral and accrual. The trial without adjusting the revenue and expenses recognized during the period is called an unadjusted
To determine:
1. Journalize the adjusting entries on December 31.
2. Open the ledger accounts with the unadjusted balances and
3. Prepare the adjusted trial balance.
4. Assuming the adjusted trial balance has total debits equal to total credits, does this mean that the adjusting entries have been recorded correctly? Explain.

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Chapter 3 Solutions
EBK HORNGREN'S ACCOUNTING
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