Adjusting entries : Adjusting entries refers to the entries that are made at the end of an accounting period in accordance with revenue recognition principle, and expenses recognition principle. The purpose of adjusting entries is to adjust the revenue, and the expenses for the period in which they actually occurred. Adjusting entries are classified into two categories. They are as follows, Deferrals, or Accruals. Deferrals: Deferrals refer to the revenues that are collected in advance before the services are provided or sales are made to the customer, and the expenses are paid in advance before the expenses are incurred. Deferrals are classified into two types. They are prepaid expenses, and unearned revenues. Prepaid expenses: The expenses are paid in cash, before they are incurred. Unearned revenue: The cash is received, before the services are performed. Accruals: Accruals refer to the revenues that are generated from goods delivered or, service performed to the customer, but cash is not yet received from the customer, and the expenses are incurred, but cash is not yet paid. Accruals are classified into two types. They are accrued revenues, and accrued expenses. Accrued revenues: Revenues are generated but not yet received in cash. Accrued expenses: Expenses are incurred but not yet paid in cash. To identify: Theitems that may result in adjusting entries for deferrals.

Question

Want to see the full answer?

Answer 1

Question

Chapter 4, Problem 4.1BYP

(a)

To determine

Adjusting entries:

Adjusting entries refers to the entries that are made at the end of an accounting period in accordance with revenue recognition principle, and expenses recognition principle. The purpose of adjusting entries is to adjust the revenue, and the expenses for the period in which they actually occurred.

Adjusting entries are classified into two categories. They are as follows,

Deferrals, or

Accruals.

Deferrals:

Deferrals refer to the revenues that are collected in advance before the services are provided or sales are made to the customer, and the expenses are paid in advance before the expenses are incurred.

Deferrals are classified into two types. They are prepaid expenses, and unearned revenues.

Prepaid expenses: The expenses are paid in cash, before they are incurred.

Unearned revenue: The cash is received, before the services are performed.

Accruals:

Accruals refer to the revenues that are generated from goods delivered or, service performed to the customer, but cash is not yet received from the customer, and the expenses are incurred, but cash is not yet paid.

Accruals are classified into two types. They are accrued revenues, and accrued expenses.

Accrued revenues: Revenues are generated but not yet received in cash.

Accrued expenses: Expenses are incurred but not yet paid in cash.

To identify: Theitems that may result in adjusting entries for deferrals.

(b)

To determine

To identify: The two items that may result in adjusting entries for accruals.

(c)

To determine

To identify: The amount of depreciation and amortization expense for 2011 and 2010, and identify where it is reported

(d)

To determine

To identify: The amounts of income tax reported in the cash flow, and identify the amount of income tax expense reported in the income statement.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

On the 5th of the month, Greg Marketing pays its field sales personnel a 3% commission on the previous month's sales. Sales for March 2016 were $1,200,000. What is the entry at the end of March to record the commissions? A. Debit Sales - 36,000$; Credit Sales Commission Expense - 36,000$ B. Debit Sales Commission Expense - 36,000$; Credit Sales Commissions Payable - 36,000$ C. Debit Sales Commission Expense - 36,000$; Credit Accounts Receivable - 36,000$ D. Debit Sales -36,000$; Credit Sales Commission Income - 36,000$

Net profit is calculated in which of the following account? A) Profit and loss account B) Balance sheet C) Trial balance D) Trading account

The debts which are to be repaid within a short period (a year or less) are referred to as, A) Current Liabilities B) Fixed liabilities C) Contingent liabilities D) All the above

Answer 2

Question

Chapter 4, Problem 4.1BYP

(a)

To determine

Adjusting entries:

Adjusting entries refers to the entries that are made at the end of an accounting period in accordance with revenue recognition principle, and expenses recognition principle. The purpose of adjusting entries is to adjust the revenue, and the expenses for the period in which they actually occurred.

Adjusting entries are classified into two categories. They are as follows,

Deferrals, or

Accruals.

Deferrals:

Deferrals refer to the revenues that are collected in advance before the services are provided or sales are made to the customer, and the expenses are paid in advance before the expenses are incurred.

Deferrals are classified into two types. They are prepaid expenses, and unearned revenues.

Prepaid expenses: The expenses are paid in cash, before they are incurred.

Unearned revenue: The cash is received, before the services are performed.

Accruals:

Accruals refer to the revenues that are generated from goods delivered or, service performed to the customer, but cash is not yet received from the customer, and the expenses are incurred, but cash is not yet paid.

Accruals are classified into two types. They are accrued revenues, and accrued expenses.

Accrued revenues: Revenues are generated but not yet received in cash.

Accrued expenses: Expenses are incurred but not yet paid in cash.

To identify: Theitems that may result in adjusting entries for deferrals.

(b)

To determine

To identify: The two items that may result in adjusting entries for accruals.

(c)

To determine

To identify: The amount of depreciation and amortization expense for 2011 and 2010, and identify where it is reported

(d)

To determine

To identify: The amounts of income tax reported in the cash flow, and identify the amount of income tax expense reported in the income statement.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 4, Problem 4.1BYP

(a)

To determine

Adjusting entries:

Adjusting entries refers to the entries that are made at the end of an accounting period in accordance with revenue recognition principle, and expenses recognition principle. The purpose of adjusting entries is to adjust the revenue, and the expenses for the period in which they actually occurred.

Adjusting entries are classified into two categories. They are as follows,

Deferrals, or

Accruals.

Deferrals:

Deferrals refer to the revenues that are collected in advance before the services are provided or sales are made to the customer, and the expenses are paid in advance before the expenses are incurred.

Deferrals are classified into two types. They are prepaid expenses, and unearned revenues.

Prepaid expenses: The expenses are paid in cash, before they are incurred.

Unearned revenue: The cash is received, before the services are performed.

Accruals:

Accruals refer to the revenues that are generated from goods delivered or, service performed to the customer, but cash is not yet received from the customer, and the expenses are incurred, but cash is not yet paid.

Accruals are classified into two types. They are accrued revenues, and accrued expenses.

Accrued revenues: Revenues are generated but not yet received in cash.

Accrued expenses: Expenses are incurred but not yet paid in cash.

To identify: Theitems that may result in adjusting entries for deferrals.

(b)

To determine

To identify: The two items that may result in adjusting entries for accruals.

(c)

To determine

To identify: The amount of depreciation and amortization expense for 2011 and 2010, and identify where it is reported

(d)

To determine

To identify: The amounts of income tax reported in the cash flow, and identify the amount of income tax expense reported in the income statement.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 4, Problem 4.1BYP

(a)

To determine

Adjusting entries:

Adjusting entries refers to the entries that are made at the end of an accounting period in accordance with revenue recognition principle, and expenses recognition principle. The purpose of adjusting entries is to adjust the revenue, and the expenses for the period in which they actually occurred.

Adjusting entries are classified into two categories. They are as follows,

Deferrals, or

Accruals.

Deferrals:

Deferrals refer to the revenues that are collected in advance before the services are provided or sales are made to the customer, and the expenses are paid in advance before the expenses are incurred.

Deferrals are classified into two types. They are prepaid expenses, and unearned revenues.

Prepaid expenses: The expenses are paid in cash, before they are incurred.

Unearned revenue: The cash is received, before the services are performed.

Accruals:

Accruals refer to the revenues that are generated from goods delivered or, service performed to the customer, but cash is not yet received from the customer, and the expenses are incurred, but cash is not yet paid.

Accruals are classified into two types. They are accrued revenues, and accrued expenses.

Accrued revenues: Revenues are generated but not yet received in cash.

Accrued expenses: Expenses are incurred but not yet paid in cash.

To identify: Theitems that may result in adjusting entries for deferrals.

(b)

To determine

To identify: The two items that may result in adjusting entries for accruals.

(c)

To determine

To identify: The amount of depreciation and amortization expense for 2011 and 2010, and identify where it is reported

(d)

To determine

To identify: The amounts of income tax reported in the cash flow, and identify the amount of income tax expense reported in the income statement.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 4, Problem 4.1BYP

(a)

To determine

Adjusting entries:

Adjusting entries refers to the entries that are made at the end of an accounting period in accordance with revenue recognition principle, and expenses recognition principle. The purpose of adjusting entries is to adjust the revenue, and the expenses for the period in which they actually occurred.

Adjusting entries are classified into two categories. They are as follows,

Deferrals, or

Accruals.

Deferrals:

Deferrals refer to the revenues that are collected in advance before the services are provided or sales are made to the customer, and the expenses are paid in advance before the expenses are incurred.

Deferrals are classified into two types. They are prepaid expenses, and unearned revenues.

Prepaid expenses: The expenses are paid in cash, before they are incurred.

Unearned revenue: The cash is received, before the services are performed.

Accruals:

Accruals refer to the revenues that are generated from goods delivered or, service performed to the customer, but cash is not yet received from the customer, and the expenses are incurred, but cash is not yet paid.

Accruals are classified into two types. They are accrued revenues, and accrued expenses.

Accrued revenues: Revenues are generated but not yet received in cash.

Accrued expenses: Expenses are incurred but not yet paid in cash.

To identify: Theitems that may result in adjusting entries for deferrals.

(b)

To determine

To identify: The two items that may result in adjusting entries for accruals.

(c)

To determine

To identify: The amount of depreciation and amortization expense for 2011 and 2010, and identify where it is reported

(d)

To determine

To identify: The amounts of income tax reported in the cash flow, and identify the amount of income tax expense reported in the income statement.

Answer 6

Chapter 4, Problem 4.1BYP

(a)

To determine

Adjusting entries:

Adjusting entries refers to the entries that are made at the end of an accounting period in accordance with revenue recognition principle, and expenses recognition principle. The purpose of adjusting entries is to adjust the revenue, and the expenses for the period in which they actually occurred.

Adjusting entries are classified into two categories. They are as follows,

Deferrals, or

Accruals.

Deferrals:

Deferrals refer to the revenues that are collected in advance before the services are provided or sales are made to the customer, and the expenses are paid in advance before the expenses are incurred.

Deferrals are classified into two types. They are prepaid expenses, and unearned revenues.

Prepaid expenses: The expenses are paid in cash, before they are incurred.

Unearned revenue: The cash is received, before the services are performed.

Accruals:

Accruals refer to the revenues that are generated from goods delivered or, service performed to the customer, but cash is not yet received from the customer, and the expenses are incurred, but cash is not yet paid.

Accruals are classified into two types. They are accrued revenues, and accrued expenses.

Accrued revenues: Revenues are generated but not yet received in cash.

Accrued expenses: Expenses are incurred but not yet paid in cash.

To identify: Theitems that may result in adjusting entries for deferrals.

Answer 7

Chapter 4, Problem 4.1BYP

(a)

To determine

Adjusting entries:

Adjusting entries refers to the entries that are made at the end of an accounting period in accordance with revenue recognition principle, and expenses recognition principle. The purpose of adjusting entries is to adjust the revenue, and the expenses for the period in which they actually occurred.

Adjusting entries are classified into two categories. They are as follows,

Deferrals, or

Accruals.

Deferrals:

Deferrals refer to the revenues that are collected in advance before the services are provided or sales are made to the customer, and the expenses are paid in advance before the expenses are incurred.

Deferrals are classified into two types. They are prepaid expenses, and unearned revenues.

Prepaid expenses: The expenses are paid in cash, before they are incurred.

Unearned revenue: The cash is received, before the services are performed.

Accruals:

Accruals refer to the revenues that are generated from goods delivered or, service performed to the customer, but cash is not yet received from the customer, and the expenses are incurred, but cash is not yet paid.

Accruals are classified into two types. They are accrued revenues, and accrued expenses.

Accrued revenues: Revenues are generated but not yet received in cash.

Accrued expenses: Expenses are incurred but not yet paid in cash.

To identify: Theitems that may result in adjusting entries for deferrals.

Answer 8

(b)

To determine

To identify: The two items that may result in adjusting entries for accruals.

Answer 9

(b)

To determine

To identify: The two items that may result in adjusting entries for accruals.

Answer 10

(c)

To determine

To identify: The amount of depreciation and amortization expense for 2011 and 2010, and identify where it is reported

Answer 11

(c)

To determine

To identify: The amount of depreciation and amortization expense for 2011 and 2010, and identify where it is reported

Answer 12

(d)

To determine

To identify: The amounts of income tax reported in the cash flow, and identify the amount of income tax expense reported in the income statement.

Answer 13

(d)

To determine

To identify: The amounts of income tax reported in the cash flow, and identify the amount of income tax expense reported in the income statement.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 4 - Prob. 1Q Ch. 4 - Identify and stale two generally accepted...Ch. 4 - Prob. 3Q Ch. 4 - Prob. 4Q Ch. 4 - Prob. 5Q 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. 9Q Ch. 4 - Prob. 10Q

Concept explainers

Videos

To identify: The two items that may result in adjusting entries for accruals.

To identify: The amount of depreciation and amortization expense for 2011 and 2010, and identify where it is reported

To identify: The amounts of income tax reported in the cash flow, and identify the amount of income tax expense reported in the income statement.

Want to see the full answer?

Chapter 4 Solutions