Explanation Adjusting entries: Adjusting entries are the journal entries which are recorded at the end of the accounting period to correct or adjust the revenue and expense accounts, to concede with the accrual principle of accounting. a. Wages expense is an expense account which is a component of stockholders equity. There is an increase in the expense which decreases the stock holders’ equity. Hence, debit wages expense with $7,500. Wages payable is a liability. There is an increase in the liability. Hence, credit wages payable with $7,500 b. Unearned revenue is a liability. There is a decrease in the liability. Hence, debit unearned revenue with $4,000. Cleaning service revenue is revenue which is a component of stockholders’ equity. There is an increase in the revenue account which increases the stockholders’ equity. Hence, credit cleaning service revenue with $4,000. c. Utilities expense is the expense account which is a component of stockholders’ equity. There is an increase in the expense which decreases the stockholders’ equity. Hence, debit utilities expense with $520. Utilities payable is a liability. There is an increase in liability. Hence, credit utilities payable with $520. d. Interest expense is an expense account which is a component of stockholders’ equity. There is an increase in the expense account which decreases the stockholders’ equity. Hence, debit interest expense with $2,000. Interest payable is a liability. There is an increase in the liability. Hence, credit interest payable with $2,000. e. Accounts receivable is an asset...

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Author: Libby

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Ch. 4 - What is the purpose of recording adjusting...Ch. 4 - List the four types of adjusting entries, and give...Ch. 4 - What is a contra-asset? Give an example of one.Ch. 4 - Explain how the financial statements relate to...Ch. 4 - What is the equation for each of the following...Ch. 4 - Explain the effect of adjusting entries on cash.Ch. 4 - How is earnings per share computed and...Ch. 4 - Prob. 8Q Ch. 4 - What are the purposes for closing the books?Ch. 4 - Differentiate among (a) permanent, (b) temporary,...

Ch. 4 - Explain why the income statement accounts are...Ch. 4 - Prob. 12Q Ch. 4 - Which of the following accounts would not appear...Ch. 4 - Which account is least likely to appear in an...Ch. 4 - Prob. 3MCQ Ch. 4 - On June 1, 2016, Oakcrest Company signed a...Ch. 4 - Prob. 5MCQ Ch. 4 - An adjusted trial balance a. Shows the ending...Ch. 4 - JJ Company owns a building. Which of the following...Ch. 4 - Prob. 8MCQ Ch. 4 - Prob. 9MCQ Ch. 4 - If a company is successful in acquiring several...Ch. 4 - Preparing a Trial Balance Hagadorn Company has the...Ch. 4 - Matching Definitions with Terms Match each...Ch. 4 - Matching Definitions with Terms Match each...Ch. 4 - Recording Adjusting Entries (Deferred Accounts) In...Ch. 4 - Determining Financial Statement Effects of...Ch. 4 - Recording Adjusting Entries (Accrued Accounts) In...Ch. 4 - Prob. 4.7ME Ch. 4 - Reporting an Income Statement with Earnings per...Ch. 4 - Prob. 4.9ME Ch. 4 - Reporting an Income Statement with Earnings per...Ch. 4 - Prob. 4.11ME Ch. 4 - Recording Closing Entries Refer to the adjusted...Ch. 4 - Prob. 4.1E Ch. 4 - Prob. 4.2E Ch. 4 - Recording Adjusting Entries Diane Company...Ch. 4 - Prob. 4.4E Ch. 4 - Prob. 4.5E Ch. 4 - Recording Adjusting Entries and Reporting Balances...Ch. 4 - Determining Financial Statement Effects of...Ch. 4 - Recording Seven Typical Adjusting Entries...Ch. 4 - Prob. 4.9E Ch. 4 - Determining Financial Statement Effects of Seven...Ch. 4 - Determining Financial Statement Effects of Seven...Ch. 4 - Recording Transactions Including Adjusting and...Ch. 4 - Prob. 4.13E Ch. 4 - Determining Financial Statement Effects of...Ch. 4 - Inferring Transactions Deere Company is the...Ch. 4 - Analyzing the Effects of Errors on Financial...Ch. 4 - Prob. 4.17E Ch. 4 - Recording the Effects of Adjusting Entries and...Ch. 4 - Reporting a Correct Income Statement with Earnings...Ch. 4 - Recording Four Adjusting Entries and Completing...Ch. 4 - Prob. 4.21E Ch. 4 - Recording Four Adjusting Entries and Completing...Ch. 4 - Prob. 4.1P Ch. 4 - Prob. 4.2P Ch. 4 - Prob. 4.3P Ch. 4 - Prob. 4.4P Ch. 4 - Prob. 4.5P Ch. 4 - Prob. 4.6P Ch. 4 - Prob. 4.7P Ch. 4 - Prob. 4.1AP Ch. 4 - Prob. 4.2AP Ch. 4 - Prob. 4.3AP Ch. 4 - Prob. 4.4AP Ch. 4 - Determining Financial Statement Effects of...Ch. 4 - Prob. 4.6AP Ch. 4 - Prob. 4.7AP Ch. 4 - Prob. 4.1CON Ch. 4 - Recording Transactions (Including Adjusting and...Ch. 4 - Recording Transactions (Including Adjusting and...Ch. 4 - Finding Financial Information Refer to the...Ch. 4 - Finding Financial Information Refer to the...Ch. 4 - Comparing Companies within an Industry and Over...Ch. 4 - Prob. 4.4CP Ch. 4 - Prob. 4.5CP Ch. 4 - Prob. 4.6CP Ch. 4 - Prob. 4.7CP Ch. 4 - Prob. 4.8CP Ch. 4 - Prob. 4.9CP

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