Is this transaction need to be adjusted? I know it is not about expense and revenue. But I always think some of the transaction also need to be adjusted, for example: I purchase a $10000 worth equipment that the provider will give me that later. So the transaction be like: Advance payment (asset) 10000 Cash (asset) 10000 Now I know the equipment will be delivered in the next accounting period, and it is not a accrued reveneue or accrued expense, but someone owe me an ASSET? How should I adjust this? Accrued asset? But it is not exisited, or is it need to be adjusted?

Is this transaction need to be adjusted? I know it is not about expense and revenue. But I always think some of the transaction also need to be adjusted, for example: I purchase a $10000 worth equipment that the provider will give me that later. So the transaction be like: Advance payment (asset) 10000 Cash (asset) 10000 Now I know the equipment will be delivered in the next accounting period, and it is not a accrued reveneue or accrued expense, but someone owe me an ASSET? How should I adjust this? Accrued asset? But it is not exisited, or is it need to be adjusted?

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Description: Is this transaction need to be adjusted? I know it is not about expense and revenue. But I always think some of the transaction also need to be adjusted, for example:I purchase a $10000 worth equipment that the provider will give me that later. So th

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter5: Adjusting Entries And The Work Sheet

Section: Chapter Questions

Problem 13SEA: CASH, MODIFIED CASH, AND ACCRUAL BASES OF ACCOUNTING Prepare the entry for each of the following...

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How to journal a transaction like this. I purchase a machine that cost me $10000, but the seller will give me the machine on the next accounting period. as it is a machine, that can bring you future economic benefits from the next few accounting period, so it is not an expense, it is an asset. Also, it is not an revenue either. So what should I record? So from the seller point of view, it would be: Cash 10000 Unearned revenue 10000 But in buyer view: How should I record this transaction? Machine receivable 10000? (This account should not be existed, it should be wrong.) Cash 10000
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