You are the bookkeeper for a small but thriving business.  You have asked the owner for the information you need to make adjusting entries for depreciation, supplies , insurance, and wages.  He says that he's really busy and that what you've done so far is "close enough". Explain the need for adjusting entries and their effect on the owner's balance sheet and the "bottom line" of the income statement.

College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter4: Adjusting Entries And The Work Sheet
Section: Chapter Questions
Problem 2A: You are the bookkeeper for a small but thriving business. You have asked the owner for the...
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  • You are the bookkeeper for a small but thriving business.  You have asked the owner for the information you need to make adjusting entries for depreciation, supplies , insurance, and wages.  He says that he's really busy and that what you've done so far is "close enough". Explain the need for adjusting entries and their effect on the owner's balance sheet and the "bottom line" of the income statement.

     
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