Problem 3-64A Identification and Preparation of Adjusting Entries
Kuepper’s Day Care is a large daycare center in South Orange, New Jersey. The daycare center serves several nearby businesses as well as a number of individual families. The businesses pay $6,180 child per year for daycare services for their employees' children. The businesses pay in on a quarterly basis. For individual families, daycare services are provided monthly and billed at the beginning of the next month. The following transactions describe Kuepper’s activities during December 2019:
Required:
Concept Introduction:
Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.
The business activity for each type of adjusting entry is explained as follows:
To Indicate:
If the given transactions require adjusting entry or not.
Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period.
The given transactions require adjusting entry or not as follows:
Kuepper's Day Care | |||||||||
Transaction | Adjusting entry required or not | Type of adjusting entry | |||||||
a. | Not Required | NA | |||||||
b. | Required | Accrued Revenue | |||||||
c... |
Concept Introduction:
Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.
The business activity for each type of adjusting entry is explained as follows:
To Prepare The journal entries for the given adjustments.
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