What is the purpose of the adjusting journal entries? In this case, the AJEs negatively affected the net income, so why did Just for Kicks even do them?

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What is the purpose of the adjusting journal entries?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter5: Closing Entries And The Post-closing Trial Balance

Section: Chapter Questions

Problem 5A: The bookkeeper has completed a work sheet and has journalized and posted the closing entries, but he...

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What is the purpose of the adjusting journal entries? In this case, the AJEs negatively affected the net income, so why did Just for Kicks even do them?

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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Which of the following statements is false? Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. Adjusting entries always affect at least one revenue or expense account and one asset or liability account. The cash account will always be affected by adjusting journal entries. Adjusting entries can be classified as either accruals or deferrals.
Which of the following is true about adjusting entries? Multiple Choice Entries are necessary due to the conservatism principle. They zero the balance of all income statement accounts. They are a necessary part of accrual-basis accounting. Entries can be done at the beginning or end of the accounting period.
what would happen to the income statement's accounts if the adjusting entries are omitted.
I have been having trouble fillling in my income statement I attached the Adjusted trail balance and just need help fill in in my income statement attached as well?
Services were performed but not billed. What effect will this have on the income statement if an adjusting entry is not made? a. Liabilities will be understated.b. Expenses will be overstated.c. Net income will be understated.d. Revenues will be overstated.
What is the major difference between the unadjusted trial balance and the adjusted trial balance? The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts. Unlike the adjusted trial balance, the unadjusted trial balance will continue with the end-of-period processing even if it is not in balance. The adjusted trial balance will be used to record the adjustments for the period. The adjusted trial balance will show the net income (loss) as an additional account.
Which statement about the worksheet is not correct? A. Resulting net income or net loss is reflected in the worksheet B. The difference betwwen the total debits and total credits in the income statement column has to be the same as the difference between the total debits and total credits in the balance sheet columns C. The adjusting entries are entered in the worksheet D. The total debits and total credits in the income and income statements columns are not the same before and after the recognition of the net income or net loss
what would happen to the income statement's accounts if the adjusting entries are omitted. what would happen to the balance sheet's accounts if the adjusting entries are omitted.
Which of the following adjusting entries would most likely be reversed? Depreciation Unpaid Salaries Depreciation Bad expense
If you fail to journalize and post the adjusting journal entry to depreciate equipment, what is the impact on the financial statements of the company? There is no impact on either the income statement or the balance sheet. Net income is understated, Assets are Understated, and Retained Earnings are understated Expenses are understated, Assets are overstated, and Retained Earnings are overstated Revenue is understated, Liabilities are understated, and Retained Earnings are understated Expenses are understated, Assets are Understated, and Retained Earnings are understated
It is obvious that an error occurred in the preparation and/or posting of closing entries if Group of answer choices A. all revenue and expense accounts have zero balances. B. all balance sheet accounts have zero balances. C. the retained earnings account is debited for the amount of the net loss of the period. D. the income summary account is debited for the amount of the net income for the period.
If a company fails to make an adjusting entry to estimate uncollectible accounts, then this error: A understates assets B understates owners equity C overstates experise D overstates net income