Adjusting Entries Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence. Unearned Service Revenue Unearned service revenue is the revenue which is earned in advance, ahead of rendering the service. As per the revenue recognition principle it is not recorded in the books of accounts. This is a liability for the business. Rule of Debit and Credit: Debit- Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity . Credit- Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses. To journalize and post: The given transaction is to be posted to ledger on 1 st July and passing adjusting entry on 31 st December for Company M.

Question

Want to see the full answer?

Answer 1

Question

Chapter 4, Problem 4.7BE

To determine

Adjusting Entries

Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence.

Unearned Service Revenue

Unearned service revenue is the revenue which is earned in advance, ahead of rendering the service. As per the revenue recognition principle it is not recorded in the books of accounts. This is a liability for the business.

Rule of Debit and Credit:

Debit- Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity.

Credit- Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses.

To journalize and post: The given transaction is to be posted to ledger on 1^st July and passing adjusting entry on 31^st December for Company M.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

General Accounting

give me answer general accounting question

What her net income for this accounting question?

Answer 2

Question

Chapter 4, Problem 4.7BE

To determine

Adjusting Entries

Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence.

Unearned Service Revenue

Unearned service revenue is the revenue which is earned in advance, ahead of rendering the service. As per the revenue recognition principle it is not recorded in the books of accounts. This is a liability for the business.

Rule of Debit and Credit:

Debit- Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity.

Credit- Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses.

To journalize and post: The given transaction is to be posted to ledger on 1^st July and passing adjusting entry on 31^st December for Company M.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 4, Problem 4.7BE

To determine

Adjusting Entries

Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence.

Unearned Service Revenue

Unearned service revenue is the revenue which is earned in advance, ahead of rendering the service. As per the revenue recognition principle it is not recorded in the books of accounts. This is a liability for the business.

Rule of Debit and Credit:

Debit- Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity.

Credit- Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses.

To journalize and post: The given transaction is to be posted to ledger on 1^st July and passing adjusting entry on 31^st December for Company M.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 4, Problem 4.7BE

To determine

Adjusting Entries

Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence.

Unearned Service Revenue

Unearned service revenue is the revenue which is earned in advance, ahead of rendering the service. As per the revenue recognition principle it is not recorded in the books of accounts. This is a liability for the business.

Rule of Debit and Credit:

Debit- Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity.

Credit- Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses.

To journalize and post: The given transaction is to be posted to ledger on 1^st July and passing adjusting entry on 31^st December for Company M.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 4, Problem 4.7BE

To determine

Adjusting Entries

Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence.

Unearned Service Revenue

Unearned service revenue is the revenue which is earned in advance, ahead of rendering the service. As per the revenue recognition principle it is not recorded in the books of accounts. This is a liability for the business.

Rule of Debit and Credit:

Debit- Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity.

Credit- Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses.

To journalize and post: The given transaction is to be posted to ledger on 1^st July and passing adjusting entry on 31^st December for Company M.

Answer 6

Chapter 4, Problem 4.7BE

To determine

Adjusting Entries

Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence.

Unearned Service Revenue

Unearned service revenue is the revenue which is earned in advance, ahead of rendering the service. As per the revenue recognition principle it is not recorded in the books of accounts. This is a liability for the business.

Rule of Debit and Credit:

Debit- Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity.

Credit- Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses.

To journalize and post: The given transaction is to be posted to ledger on 1^st July and passing adjusting entry on 31^st December for Company M.

Answer 7

Chapter 4, Problem 4.7BE

To determine

Adjusting Entries

Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence.

Unearned Service Revenue

Unearned service revenue is the revenue which is earned in advance, ahead of rendering the service. As per the revenue recognition principle it is not recorded in the books of accounts. This is a liability for the business.

Rule of Debit and Credit:

Debit- Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity.

Credit- Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses.

To journalize and post: The given transaction is to be posted to ledger on 1^st July and passing adjusting entry on 31^st December for Company M.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

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

Solution Summary: The author explains that adjusting entries are passed in the books of accounts at the end of one accounting period to adjust the revenue, and the expenses of a business.

Concept explainers

Videos

Want to see the full answer?

Chapter 4 Solutions