Identify the purpose of adjusting entries .

Question

Want to see more full solutions like this?

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.

Want to see more full solutions like this?

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

Students have asked these similar questions

A company's manufacturing overhead includes $8.45 per machine hour for variable manufacturing overhead and $183,000 per period for fixed manufacturing overhead. What is the predetermined overhead rate for the denominator level of activity of 5,200 machine hours? provide answer

Accounting Question

The Farley Corporation reported earnings per share (EPS) of $10 in 2022. It paid dividends of $2.50 per share during the year. The current market price per share is $65, and the book value per share is $48. Question: What is Farley Corporation's price-earnings (P/E) ratio?

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.

Want to see more full solutions like this?

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.

Want to see more full solutions like this?

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.

Want to see more full solutions like this?

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.