Identify the purpose of adjusting entries .

Question

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Answer 1

Question

Chapter 4, Problem 1STQ

To determine

Identify the purpose of adjusting entries.

Expert Solution & Answer

Answer to Problem 1STQ

Option (c) is the correct answer.

Apply the realization principle and the matching principle to transactions affecting two or more accounting periods.

Explanation of Solution

Option (a) Adjust the retained earnings account for the revenue, expense, and dividends recorded during the accounting period is not the purpose of the adjusting entries. Thus option (a) is not the correct answer.

Option (b) Adjust daily the balances in asset, liability, revenue, and expense accounts for the effects of business transaction is not the purpose of adjusting entries. Thus, option (b) is not the correct answer.

Option (c) Apply the realization principle and the matching principle to transactions affecting two or more accounting period is the purpose of adjusting entries. Thus, option (c) is the correct answer.

Option (d) Prepare revenue and expense accounts for recording the transactions of the next accounting period is not the purpose of the adjusting entries. Thus, option (d) is not the correct answer.

Thus, as per the above explanation option (a), (b), and (d) are the wrong answers. Hence, Option (c) is the correct answer.

Conclusion

Thus, Option (c) is the correct answer.

Apply the realization principle and the matching principle to transactions affecting two or more accounting periods.

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The following data were selected from the records of Fluwars Company for the year ended December 31, current year: Balances at January 1, current year: Accounts receivable (various customers) $ 111,500 Allowance for doubtful accounts 11,200 The company sold merchandise for cash and on open account with credit terms 1/10, n/30, without a right of return. The following transactions occurred during the current year: Sold merchandise for cash, $252,000. Sold merchandise to Abbey Corp; invoice amount, $36,000. Sold merchandise to Brown Company; invoice amount, $47,600. Abbey paid the invoice in (b) within the discount period. Sold merchandise to Cavendish Inc.; invoice amount, $50,000. Collected $113,100 cash from customers for credit sales made during the year, all within the discount periods. Brown paid its account in full within the discount period. Sold merchandise to Decca Corporation; invoice amount, $42,400. Cavendish paid its account in full after the…

Answer 2

Question

Chapter 4, Problem 1STQ

To determine

Identify the purpose of adjusting entries.

Expert Solution & Answer

Answer to Problem 1STQ

Option (c) is the correct answer.

Apply the realization principle and the matching principle to transactions affecting two or more accounting periods.

Explanation of Solution

Option (a) Adjust the retained earnings account for the revenue, expense, and dividends recorded during the accounting period is not the purpose of the adjusting entries. Thus option (a) is not the correct answer.

Option (b) Adjust daily the balances in asset, liability, revenue, and expense accounts for the effects of business transaction is not the purpose of adjusting entries. Thus, option (b) is not the correct answer.

Option (c) Apply the realization principle and the matching principle to transactions affecting two or more accounting period is the purpose of adjusting entries. Thus, option (c) is the correct answer.

Option (d) Prepare revenue and expense accounts for recording the transactions of the next accounting period is not the purpose of the adjusting entries. Thus, option (d) is not the correct answer.

Thus, as per the above explanation option (a), (b), and (d) are the wrong answers. Hence, Option (c) is the correct answer.

Conclusion

Thus, Option (c) is the correct answer.

Apply the realization principle and the matching principle to transactions affecting two or more accounting periods.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 4, Problem 1STQ

To determine

Identify the purpose of adjusting entries.

Expert Solution & Answer

Answer to Problem 1STQ

Option (c) is the correct answer.

Apply the realization principle and the matching principle to transactions affecting two or more accounting periods.

Explanation of Solution

Option (a) Adjust the retained earnings account for the revenue, expense, and dividends recorded during the accounting period is not the purpose of the adjusting entries. Thus option (a) is not the correct answer.

Option (b) Adjust daily the balances in asset, liability, revenue, and expense accounts for the effects of business transaction is not the purpose of adjusting entries. Thus, option (b) is not the correct answer.

Option (c) Apply the realization principle and the matching principle to transactions affecting two or more accounting period is the purpose of adjusting entries. Thus, option (c) is the correct answer.

Option (d) Prepare revenue and expense accounts for recording the transactions of the next accounting period is not the purpose of the adjusting entries. Thus, option (d) is not the correct answer.

Thus, as per the above explanation option (a), (b), and (d) are the wrong answers. Hence, Option (c) is the correct answer.

Conclusion

Thus, Option (c) is the correct answer.

Apply the realization principle and the matching principle to transactions affecting two or more accounting periods.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 4, Problem 1STQ

To determine

Identify the purpose of adjusting entries.

Expert Solution & Answer

Answer to Problem 1STQ

Option (c) is the correct answer.

Apply the realization principle and the matching principle to transactions affecting two or more accounting periods.

Explanation of Solution

Option (a) Adjust the retained earnings account for the revenue, expense, and dividends recorded during the accounting period is not the purpose of the adjusting entries. Thus option (a) is not the correct answer.

Option (b) Adjust daily the balances in asset, liability, revenue, and expense accounts for the effects of business transaction is not the purpose of adjusting entries. Thus, option (b) is not the correct answer.

Option (c) Apply the realization principle and the matching principle to transactions affecting two or more accounting period is the purpose of adjusting entries. Thus, option (c) is the correct answer.

Option (d) Prepare revenue and expense accounts for recording the transactions of the next accounting period is not the purpose of the adjusting entries. Thus, option (d) is not the correct answer.

Thus, as per the above explanation option (a), (b), and (d) are the wrong answers. Hence, Option (c) is the correct answer.

Conclusion

Thus, Option (c) is the correct answer.

Apply the realization principle and the matching principle to transactions affecting two or more accounting periods.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 4, Problem 1STQ

To determine

Identify the purpose of adjusting entries.

Expert Solution & Answer

Answer to Problem 1STQ

Option (c) is the correct answer.

Apply the realization principle and the matching principle to transactions affecting two or more accounting periods.

Explanation of Solution

Option (a) Adjust the retained earnings account for the revenue, expense, and dividends recorded during the accounting period is not the purpose of the adjusting entries. Thus option (a) is not the correct answer.

Option (b) Adjust daily the balances in asset, liability, revenue, and expense accounts for the effects of business transaction is not the purpose of adjusting entries. Thus, option (b) is not the correct answer.

Option (c) Apply the realization principle and the matching principle to transactions affecting two or more accounting period is the purpose of adjusting entries. Thus, option (c) is the correct answer.

Option (d) Prepare revenue and expense accounts for recording the transactions of the next accounting period is not the purpose of the adjusting entries. Thus, option (d) is not the correct answer.

Thus, as per the above explanation option (a), (b), and (d) are the wrong answers. Hence, Option (c) is the correct answer.

Conclusion

Thus, Option (c) is the correct answer.

Apply the realization principle and the matching principle to transactions affecting two or more accounting periods.

Answer 6

Chapter 4, Problem 1STQ

To determine

Identify the purpose of adjusting entries.

Expert Solution & Answer

Answer to Problem 1STQ

Option (c) is the correct answer.

Apply the realization principle and the matching principle to transactions affecting two or more accounting periods.

Explanation of Solution

Option (a) Adjust the retained earnings account for the revenue, expense, and dividends recorded during the accounting period is not the purpose of the adjusting entries. Thus option (a) is not the correct answer.

Option (b) Adjust daily the balances in asset, liability, revenue, and expense accounts for the effects of business transaction is not the purpose of adjusting entries. Thus, option (b) is not the correct answer.

Option (c) Apply the realization principle and the matching principle to transactions affecting two or more accounting period is the purpose of adjusting entries. Thus, option (c) is the correct answer.

Option (d) Prepare revenue and expense accounts for recording the transactions of the next accounting period is not the purpose of the adjusting entries. Thus, option (d) is not the correct answer.

Thus, as per the above explanation option (a), (b), and (d) are the wrong answers. Hence, Option (c) is the correct answer.

Conclusion

Thus, Option (c) is the correct answer.

Apply the realization principle and the matching principle to transactions affecting two or more accounting periods.

Answer 7

Chapter 4, Problem 1STQ

To determine

Identify the purpose of adjusting entries.

Answer 8

Expert Solution & Answer

Answer to Problem 1STQ

Option (c) is the correct answer.

Apply the realization principle and the matching principle to transactions affecting two or more accounting periods.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Option (a) Adjust the retained earnings account for the revenue, expense, and dividends recorded during the accounting period is not the purpose of the adjusting entries. Thus option (a) is not the correct answer.

Option (b) Adjust daily the balances in asset, liability, revenue, and expense accounts for the effects of business transaction is not the purpose of adjusting entries. Thus, option (b) is not the correct answer.

Option (c) Apply the realization principle and the matching principle to transactions affecting two or more accounting period is the purpose of adjusting entries. Thus, option (c) is the correct answer.

Option (d) Prepare revenue and expense accounts for recording the transactions of the next accounting period is not the purpose of the adjusting entries. Thus, option (d) is not the correct answer.

Thus, as per the above explanation option (a), (b), and (d) are the wrong answers. Hence, Option (c) is the correct answer.