"In the blank space beside each adjusting entry, enter the letter of the explanation A through Fthat most closely describes the entry.To record this period's depreciation expenseTo record accrued salaries expense.To record this period's use of a prepaid expense.To record accrued interest revenue.To record accrued interest expense.To record the earning of previously unearned income.1. Interest Expense.Interest Payable2. Insurance Expense.Prepaid Insurance3. Unearned Professional Fees2,2084. Interest Recelvable.3,3002,208Interest Rovenue3,3003,1805. Depreciation Expense38,2173,180Accumulated Depreciation38,2176. Salaries Expense.Salaries Payable19,25013,280Professional Fees Earned..19,25013,280............

1. E (To record accrued interest expense.) Interest expense is debited because it is an expense and…

'In the blank space beside each adjusting entry, enter the letter of the explanation A through F hat most closely describes the entry. To record this period's depreciation expense To record accrued salaries expense. To record this period's use of a prepaid expense. To record accrued interest revenue. To record accrued interest expense. To record the earning of previously unearmed income. 1. Interest Expense. Interest Payable 2 Insurance Expense. Prepaid Insurance 4. Interest Receivable. Interest Revenue 5. Depreciation Expense 2.208 3,300 2,208 3,300 3,180 38,217 3,180 Accumulated Depreciation 38,217 6. Salaries Expense. Salaries Payable 3. Unearned Professional Foes 19,250 13.280 Professional Fees Earned 19,250 13,280

'In the blank space beside each adjusting entry, enter the letter of the explanation A through F hat most closely describes the entry. To record this period's depreciation expense To record accrued salaries expense. To record this period's use of a prepaid expense. To record accrued interest revenue. To record accrued interest expense. To record the earning of previously unearmed income. 1. Interest Expense. Interest Payable 2 Insurance Expense. Prepaid Insurance 4. Interest Receivable. Interest Revenue 5. Depreciation Expense 2.208 3,300 2,208 3,300 3,180 38,217 3,180 Accumulated Depreciation 38,217 6. Salaries Expense. Salaries Payable 3. Unearned Professional Foes 19,250 13.280 Professional Fees Earned 19,250 13,280

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 14MC: What adjusting journal entry is needed to record depreciation expense for the period? A. a debit to...

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Read each definition below and write the number of the definition in the blank beside the appropriate term. The quiz solutions appear at the end of the chapter. Recognition Historical cost Current value Cash basis Accrual basis Revenues Revenue recognition principle Matching principle Expenses Adjusting entries Straight-line method Contra account Deferral Deferred expense Deferred revenue Accrual Accrued liability Accrued asset Accounting cycle Work sheet Real accounts Nominal accounts Closing entries Interim statements A device used at the end of the period to gather the information needed to prepare financial statements without actually recording and posting adjusting entries. Inflows of assets or settlements of liabilities from delivering or producing goods, rendering services, or conducting other activities. Journal entries made at the end of a period by a company using the accrual basis of accounting. Journal entries made at the end of the period to return the balance in all nominal accounts to zero and transfer the net income or loss and the dividends to Retained Earnings. A liability resulting from the receipt of cash before the recognition of revenue. The name given to balance sheet accounts because they are permanent and are not closed at the end of the period. An asset resulting from the recognition of a revenue before the receipt of cash. The amount of cash or its equivalent that could be received by selling an asset currently. The assignment of an equal amount of depreciation to each period. Cash has been paid or received but expense or revenue has not yet been recognized. A system of accounting in which revenues are recognized when a performance obligation is satisfied and expenses are recognized when incurred. Cash has not yet been paid or received but expense has been incurred or revenue recognized. Financial statements prepared monthly, quarterly, or at other intervals less than a year in duration. Revenues are recognized in the income statement when a performance obligation is satisfied. The process of recording an item in the financial statements as an asset, a liability, a revenue, an expense, or the like. An asset resulting from the payment of cash before the incurrence of expense. The name given to revenue, expense, and dividend accounts because they are temporary and are closed at the end of the period. A system of accounting in which revenues are recognized when cash is received and expenses are recognized when cash is paid. A liability resulting from the recognition of an expense before the payment of cash. The association of revenue of a period with all of the costs necessary to generate that revenue. An account with a balance that is opposite that of a related account. The amount paid for an asset and used as a basis for recognizing it on the balance sheet and carrying it on later balance sheets. Outflows of assets or incurrences of liabilities resulting from delivering goods, rendering services, or carrying out other activities. A series of steps performed each period and culminating with the preparation of a set of financial statements.
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