Adjusting entries : An adjusting entry is prepared when the trial balance is not up-to-date, and complete, and they are usually prepared at the end of the accounting period. This adjusting entry is essential for preparing the financial statements of the business. Accrual adjusting entries: The accrual adjusting entry consist of two types of adjusting entries, they are as follows: Accrued expenses. Accrued revenues. Accrued expenses: Accrued expenses are the expenses that have been incurred but have not been paid yet. These accrued expenses create accrued liabilities. For the portion of payment made, accrued liabilities would be reduced by way of passing an adjusting entry. Thus, adjusting entries of accrued expenses, will increase the liability account (a credit), and increase the expense account (a debit). Accrued revenues: Accrued revenues are the revenues that have been earned, but the cash has not yet been collected for the earned revenue. These accrued revenues create assets. For the portion of collection of cash, created assets would be reduced by way of passing an adjusting entry. Thus, adjusting entries of accrued revenue, will increase the asset account (a debit), and increase the revenue account (a credit). To prepare: The accrual adjusting entries for T company at December, 31.

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Answer 1

Question

Chapter 4, Problem 4.10BE

(a)

To determine

Adjusting entries:

An adjusting entry is prepared when the trial balance is not up-to-date, and complete, and they are usually prepared at the end of the accounting period. This adjusting entry is essential for preparing the financial statements of the business.

Accrual adjusting entries:

The accrual adjusting entry consist of two types of adjusting entries, they are as follows:

Accrued expenses.

Accrued revenues.

Accrued expenses:

Accrued expenses are the expenses that have been incurred but have not been paid yet. These accrued expenses create accrued liabilities. For the portion of payment made, accrued liabilities would be reduced by way of passing an adjusting entry. Thus, adjusting entries of accrued expenses, will increase the liability account (a credit), and increase the expense account (a debit).

Accrued revenues:

Accrued revenues are the revenues that have been earned, but the cash has not yet been collected for the earned revenue. These accrued revenues create assets. For the portion of collection of cash, created assets would be reduced by way of passing an adjusting entry.

Thus, adjusting entries of accrued revenue, will increase the asset account (a debit), and increase the revenue account (a credit).

To prepare: The accrual adjusting entries for T company at December, 31.

(b)

To determine

To prepare: The accrual adjusting entries for T company at December, 31.

(c)

To determine

To prepare: The accrual adjusting entries for T company at December, 31.

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Can you demonstrate the accurate method for solving this financial accounting question?

March, April, and May sales are $80,000, $95,000, and $110,000, respectively. 15% of sales are collected in the month of sale; 60% are collected in the month following sale, and the remaining 25% are collected in the second month following sale. What is the amount of cash collections in May? Show steps used in solving the problem. A. $118,500 B. $25,000 C. $93,500 D. $115,000

Can you solve this general accounting problem using accurate calculation methods?

Answer 2

Question

Chapter 4, Problem 4.10BE

(a)

To determine

Adjusting entries:

An adjusting entry is prepared when the trial balance is not up-to-date, and complete, and they are usually prepared at the end of the accounting period. This adjusting entry is essential for preparing the financial statements of the business.

Accrual adjusting entries:

The accrual adjusting entry consist of two types of adjusting entries, they are as follows:

Accrued expenses.

Accrued revenues.

Accrued expenses:

Accrued expenses are the expenses that have been incurred but have not been paid yet. These accrued expenses create accrued liabilities. For the portion of payment made, accrued liabilities would be reduced by way of passing an adjusting entry. Thus, adjusting entries of accrued expenses, will increase the liability account (a credit), and increase the expense account (a debit).

Accrued revenues:

Accrued revenues are the revenues that have been earned, but the cash has not yet been collected for the earned revenue. These accrued revenues create assets. For the portion of collection of cash, created assets would be reduced by way of passing an adjusting entry.

Thus, adjusting entries of accrued revenue, will increase the asset account (a debit), and increase the revenue account (a credit).

To prepare: The accrual adjusting entries for T company at December, 31.

(b)

To determine

To prepare: The accrual adjusting entries for T company at December, 31.

(c)

To determine

To prepare: The accrual adjusting entries for T company at December, 31.

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Answer 3

Question

Chapter 4, Problem 4.10BE

(a)

To determine

Adjusting entries:

An adjusting entry is prepared when the trial balance is not up-to-date, and complete, and they are usually prepared at the end of the accounting period. This adjusting entry is essential for preparing the financial statements of the business.

Accrual adjusting entries:

The accrual adjusting entry consist of two types of adjusting entries, they are as follows:

Accrued expenses.

Accrued revenues.

Accrued expenses:

Accrued expenses are the expenses that have been incurred but have not been paid yet. These accrued expenses create accrued liabilities. For the portion of payment made, accrued liabilities would be reduced by way of passing an adjusting entry. Thus, adjusting entries of accrued expenses, will increase the liability account (a credit), and increase the expense account (a debit).

Accrued revenues:

Accrued revenues are the revenues that have been earned, but the cash has not yet been collected for the earned revenue. These accrued revenues create assets. For the portion of collection of cash, created assets would be reduced by way of passing an adjusting entry.

Thus, adjusting entries of accrued revenue, will increase the asset account (a debit), and increase the revenue account (a credit).

To prepare: The accrual adjusting entries for T company at December, 31.

(b)

To determine

To prepare: The accrual adjusting entries for T company at December, 31.

(c)

To determine

To prepare: The accrual adjusting entries for T company at December, 31.

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Answer 4

Question

Chapter 4, Problem 4.10BE

(a)

To determine

Adjusting entries:

An adjusting entry is prepared when the trial balance is not up-to-date, and complete, and they are usually prepared at the end of the accounting period. This adjusting entry is essential for preparing the financial statements of the business.

Accrual adjusting entries:

The accrual adjusting entry consist of two types of adjusting entries, they are as follows:

Accrued expenses.

Accrued revenues.

Accrued expenses:

Accrued expenses are the expenses that have been incurred but have not been paid yet. These accrued expenses create accrued liabilities. For the portion of payment made, accrued liabilities would be reduced by way of passing an adjusting entry. Thus, adjusting entries of accrued expenses, will increase the liability account (a credit), and increase the expense account (a debit).

Accrued revenues:

Accrued revenues are the revenues that have been earned, but the cash has not yet been collected for the earned revenue. These accrued revenues create assets. For the portion of collection of cash, created assets would be reduced by way of passing an adjusting entry.

Thus, adjusting entries of accrued revenue, will increase the asset account (a debit), and increase the revenue account (a credit).

To prepare: The accrual adjusting entries for T company at December, 31.

(b)

To determine

To prepare: The accrual adjusting entries for T company at December, 31.

(c)

To determine

To prepare: The accrual adjusting entries for T company at December, 31.

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Answer 5

Chapter 4, Problem 4.10BE

(a)

To determine

Adjusting entries:

An adjusting entry is prepared when the trial balance is not up-to-date, and complete, and they are usually prepared at the end of the accounting period. This adjusting entry is essential for preparing the financial statements of the business.

Accrual adjusting entries:

The accrual adjusting entry consist of two types of adjusting entries, they are as follows:

Accrued expenses.

Accrued revenues.

Accrued expenses:

Accrued expenses are the expenses that have been incurred but have not been paid yet. These accrued expenses create accrued liabilities. For the portion of payment made, accrued liabilities would be reduced by way of passing an adjusting entry. Thus, adjusting entries of accrued expenses, will increase the liability account (a credit), and increase the expense account (a debit).

Accrued revenues:

Accrued revenues are the revenues that have been earned, but the cash has not yet been collected for the earned revenue. These accrued revenues create assets. For the portion of collection of cash, created assets would be reduced by way of passing an adjusting entry.

Thus, adjusting entries of accrued revenue, will increase the asset account (a debit), and increase the revenue account (a credit).

To prepare: The accrual adjusting entries for T company at December, 31.

(b)

To determine

To prepare: The accrual adjusting entries for T company at December, 31.

(c)

To determine

To prepare: The accrual adjusting entries for T company at December, 31.

Answer 6

Chapter 4, Problem 4.10BE

(a)

To determine

Adjusting entries:

An adjusting entry is prepared when the trial balance is not up-to-date, and complete, and they are usually prepared at the end of the accounting period. This adjusting entry is essential for preparing the financial statements of the business.

Accrual adjusting entries:

The accrual adjusting entry consist of two types of adjusting entries, they are as follows:

Accrued expenses.

Accrued revenues.

Accrued expenses:

Accrued expenses are the expenses that have been incurred but have not been paid yet. These accrued expenses create accrued liabilities. For the portion of payment made, accrued liabilities would be reduced by way of passing an adjusting entry. Thus, adjusting entries of accrued expenses, will increase the liability account (a credit), and increase the expense account (a debit).

Accrued revenues:

Accrued revenues are the revenues that have been earned, but the cash has not yet been collected for the earned revenue. These accrued revenues create assets. For the portion of collection of cash, created assets would be reduced by way of passing an adjusting entry.

Thus, adjusting entries of accrued revenue, will increase the asset account (a debit), and increase the revenue account (a credit).

To prepare: The accrual adjusting entries for T company at December, 31.

Answer 7

Chapter 4, Problem 4.10BE

(a)

To determine

Adjusting entries:

An adjusting entry is prepared when the trial balance is not up-to-date, and complete, and they are usually prepared at the end of the accounting period. This adjusting entry is essential for preparing the financial statements of the business.

Accrual adjusting entries:

The accrual adjusting entry consist of two types of adjusting entries, they are as follows:

Accrued expenses.

Accrued revenues.

Accrued expenses:

Accrued expenses are the expenses that have been incurred but have not been paid yet. These accrued expenses create accrued liabilities. For the portion of payment made, accrued liabilities would be reduced by way of passing an adjusting entry. Thus, adjusting entries of accrued expenses, will increase the liability account (a credit), and increase the expense account (a debit).

Accrued revenues:

Accrued revenues are the revenues that have been earned, but the cash has not yet been collected for the earned revenue. These accrued revenues create assets. For the portion of collection of cash, created assets would be reduced by way of passing an adjusting entry.

Thus, adjusting entries of accrued revenue, will increase the asset account (a debit), and increase the revenue account (a credit).

To prepare: The accrual adjusting entries for T company at December, 31.

Answer 8

(b)

To determine

To prepare: The accrual adjusting entries for T company at December, 31.

Answer 9

(b)

To determine

To prepare: The accrual adjusting entries for T company at December, 31.

Answer 10

(c)

To determine

To prepare: The accrual adjusting entries for T company at December, 31.

Answer 11

(c)

To determine

To prepare: The accrual adjusting entries for T company at December, 31.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 4 - Prob. 1Q Ch. 4 - Identify and stale two generally accepted...Ch. 4 - Prob. 4Q Ch. 4 - Prob. 5Q Ch. 4 - Prob. 6Q Ch. 4 - Why may the financial information in an unadjusted...Ch. 4 - Distinguish between the two categories of...Ch. 4 - What types of accounts does a company debit and...Ch. 4 - Prob. 10Q Ch. 4 - Prob. 11Q

Solution Summary: The author explains the two types of accrual adjusting entries. Accrued expenses and revenues are the expenses that have been incurred but have not yet been paid.

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To prepare: The accrual adjusting entries for T company at December, 31.

To prepare: The accrual adjusting entries for T company at December, 31.

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