3rd Edition

ISBN: 9780136912644

Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella

Publisher: Pearson Education (US)

Concept explainers

The Effect Of Prepaid Taxes On Assets And Liabilities

Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can resu…

Final Accounts

Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

Ledger Posting

A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the a…

Trial Balance and Final Accounts

In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately…

Adjustment Entries

At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…

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Textbook Question

Chapter 4, Problem 4.21BE

Adjusting Journal Entries. Gerhard News collects payments from customers for newspaper subscriptions on a yearly basis, that is, in one-year subscriptions. On March 1, Gerhard collected $24,000 cash for one-year subscriptions. Gerhard recorded the full amount as revenue. Prepare the entry made on March 1 and the necessary adjusting journal entry on December 31. Omit explanations.

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Chapter 4, Problem 4.20BE

Chapter 4, Problem 4.22BE

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Chapter 4 Solutions

Intermediate Accounting

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Solution Summary: The author explains that an adjustment journal entry is prepared at the end of the accounting period, with the objective to make necessary adjustments in associated accounts concerning prepaid and accruals.

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Chapter 4 Solutions