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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Problem No. 3 The business assets of Glea Yares and Eunice Alico appear below: Yares Alico Cash P 10,000 P 25,000 Accounts Receivable 245,000 565,000 Inventories 122,000 260,000 Land 664,000 Building 938,000 Furniture and Fixtures Total 87,000 P1,128,000 36,000 P1,824,000 000,00 000,000 19 000,008 Account Payable Notes Payable P 178,000 200,000 Yare, Capital diw 750,000 P 245,000 345,000 adi to omen Alicol, Capital Total P1,128,000 1,234,000 P1,824,000 On March 5, 2025, Yares and Alico agreed to form a partnership contributing their assets and equities subject to the following adjustments: qining arboj su to nam a. Accounts receivable of P15,000 in Yares' books and P30,000 in Alico's are uncollectible. b. Inventories of P5,500 and P6,500 are worthless in Yares' and Alico's respective books. Required: 1. In the books of Yares, prepare the necessary journal entries: a. To record the adjustments to Yares' assets b. To close the books of Yares of viande no 251qgque oroa snemu ni 2. In the…

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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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