BuyFindarrow_forward

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
ISBN: 9781285743615

Solutions

Chapter
Section
BuyFindarrow_forward

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
ISBN: 9781285743615
Textbook Problem

If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account, which of the following statements describes the effect of the debit portion of the entry?

  1. a. Increases the balance of a revenue account.
  2. b. Increases the balance of an expense account.
  3. c. Increases the balance of an asset account.

To determine

Adjusting entries:

Adjusting entries refers to the entries that are made at the end of an accounting period in accordance with revenue recognition principle, and expenses recognition principle.  All adjusting entries affect at least one income statement account (revenue or expense), and one balance sheet account (asset or liability).

Rule of Debit and Credit:

Debit - Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity.

Credit - Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses.

To identify: The effect of the debit and credit portion of adjusting entry.

Explanation

Date Description

Post

 Ref.

Debit

($)

Credit

($)

XXX Expenses   XXXX  
                 Accounts Payable     XXXX
  (To record the expenses incurred at the end of the accounting year)      

Table (1)

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Is the following equation correct for finding the value of a constant growth stock? Explain. P0=Dors+g

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

What were Elton Mayos conclusions from the Hawthorne Studies?

Foundations of Business (MindTap Course List)

What is scalability?

Accounting Information Systems

Define the term marketing

MKTG 12:STUDENT ED.-TEXT

INCOME STATEMENT Little Books Inc. recently reported 3 million of net income. Its EBIT was 6 million, and its t...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)