Instructions: Below are terms pertinent to adjusting entries. Match each definition with its related term. Write your answer on the space provided. Terms Definifions/Transacions 1 Accrued Expense 2 Deferred Expense Revenues not yet earned, collected in advance. Ofice supplies on hand, used next accounting period. Rentrevenue collected, not yet earned. d. Rent not yet collected, already earned. An expense incurred, not yet paid or recorded. Revenue earned, not yer collected. An expense not yet incurred, paid in advance. h. Property taxes incurred, not yet paid. At the end of the year, slaries payable of P3,600 had not been recorded or paid. į Supplies for office use were purchased during the year for P500, and P100 of the ofice supplies remained on hand (unused) at year-end. k. Interest of P250 on a note receivable was earned at year-end, altfhough collecion of the interest is not due unfil the following year. Atthe end of the year, service revenues of P2,000 was collected in cash but was not yet earned. m. An expense that is unpaid and unrecorded. a. b. 3 Accrued Revenue C. 4 Deferred Revenue e. g. i.

Instructions: Below are terms pertinent to adjusting entries. Match each definition with its related term. Write your answer on the space provided. Terms Definifions/Transacions 1 Accrued Expense 2 Deferred Expense Revenues not yet earned, collected in advance. Ofice supplies on hand, used next accounting period. Rentrevenue collected, not yet earned. d. Rent not yet collected, already earned. An expense incurred, not yet paid or recorded. Revenue earned, not yer collected. An expense not yet incurred, paid in advance. h. Property taxes incurred, not yet paid. At the end of the year, slaries payable of P3,600 had not been recorded or paid. į Supplies for office use were purchased during the year for P500, and P100 of the ofice supplies remained on hand (unused) at year-end. k. Interest of P250 on a note receivable was earned at year-end, altfhough collecion of the interest is not due unfil the following year. Atthe end of the year, service revenues of P2,000 was collected in cash but was not yet earned. m. An expense that is unpaid and unrecorded. a. b. 3 Accrued Revenue C. 4 Deferred Revenue e. g. i.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 3PB: Identify which type of adjustment is indicated by these transactions. Choose accrued revenue,...

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Similar questions

What two accounts are affected by each of these adjustments? A. billed customers for services provided B. adjusted prepaid insurance to correct C. recorded depreciation expense D. recorded unpaid utility bill E. adjusted supplies inventory to correct
Prepare adjusting journal entries, as needed, considering the account balances excerpted from the unadjusted trial balance and the adjustment data. A. depreciation on fixed assets, $ 8,500 B. unexpired prepaid rent, $12,500 C. remaining balance of unearned revenue, $555
Identify which type of adjustment is indicated by these transactions. Choose accrued revenue, accrued expense, deferred revenue, deferred expense, or estimate. A. utilities owed but not paid B. cash received in advance for future services C. supplies inventory purchased D. fees earned but not yet collected E. depreciation expense recorded F. insurance paid for future periods
Identify which type of adjustment is associated with this account, and what the other account is in the adjustment. Choose accrued revenue, accrued expense, deferred revenue, or deferred expense. A. Salaries Payable B. Interest Receivable C. Unearned Fee Revenue D. Prepaid Rent
The following accounts were used to make year-end adjustments. Identify the related account that is associated with this account (the other account in the adjusting entry). A. Salaries Payable B. Depreciation Expense C. Supplies D. Unearned Rent
If adjusting entries include these listed accounts, what other account must be in that entry as well? (A) Depreciation expense; (B) Unearned Service Revenue; (C) Prepaid Insurance; (D) Interest Payable.
Prepare an adjusted trial balance from the following account information, considering the adjustment data provided (assume accounts have normal balances). Adjustments needed: Physical count of supplies inventory remaining at end of period, $2,150 Taxes payable at end of period, $3,850
Identify which type of adjustment is associated with this account, and what is the other account in the adjustment? Choose accrued revenue, accrued expense, deferred revenue, or deferred expense. A. accounts receivable B. interest payable C. prepaid insurance D. unearned rent
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.
Prepare an adjusted trial balance from the following account information, and also considering the adjustment data provided (assume accounts have normal balances). Equipment was recently purchased, so there is neither depreciation expense nor accumulated depreciation. Adjustments needed: Remaining unpaid Salaries due to employees at the end of the period, $0 Accrued Interest Payable at the end of the period, $7,700
Brief Exercise 3-30 Identification of Adjusting Entries Examine the following accounts. Prepaid Insurance Inventory Interest Payable Unearned Service Revenue Accumulated Depreciation Required: CONCEPTUAL CONNECTION Identify and explain why each account may or may not require adjustment.
Adjusting Entries The following partial list of accounts and account balances has been taken from the trial balance and the adjusted trial balance of Baye Company: Required: Next Level Prepare the adjusting entry that caused the change in each account balance.