Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus, the account is debited to recognize this prepayment. The adjustment entry for accrued salaries on December 31.

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Answer 1

Question

Chapter 3, Problem 3.9SE

1.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus, the account is debited to recognize this prepayment.

The adjustment entry for accrued salaries on December 31.

2.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The adjustment entry to record earning of revenue.

3.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The T accounts for passed entries.

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Answer 2

Question

Chapter 3, Problem 3.9SE

1.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus, the account is debited to recognize this prepayment.

The adjustment entry for accrued salaries on December 31.

2.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The adjustment entry to record earning of revenue.

3.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The T accounts for passed entries.

Expert Solution & Answer

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Answer 3

Question

Chapter 3, Problem 3.9SE

1.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus, the account is debited to recognize this prepayment.

The adjustment entry for accrued salaries on December 31.

2.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The adjustment entry to record earning of revenue.

3.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The T accounts for passed entries.

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Answer 4

Question

Chapter 3, Problem 3.9SE

1.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus, the account is debited to recognize this prepayment.

The adjustment entry for accrued salaries on December 31.

2.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The adjustment entry to record earning of revenue.

3.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The T accounts for passed entries.

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Answer 5

Chapter 3, Problem 3.9SE

1.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus, the account is debited to recognize this prepayment.

The adjustment entry for accrued salaries on December 31.

2.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The adjustment entry to record earning of revenue.

3.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The T accounts for passed entries.

Answer 6

Chapter 3, Problem 3.9SE

1.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus, the account is debited to recognize this prepayment.

The adjustment entry for accrued salaries on December 31.

Answer 7

Chapter 3, Problem 3.9SE

1.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus, the account is debited to recognize this prepayment.

The adjustment entry for accrued salaries on December 31.

Answer 8

2.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The adjustment entry to record earning of revenue.

Answer 9

2.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The adjustment entry to record earning of revenue.

Answer 10

3.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The T accounts for passed entries.

Answer 11

3.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The T accounts for passed entries.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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