Which of the following adjusting entries involves the recognition of an accrued expense? Which of the following statements regarding the role of cash in adjusting entries is true? Which of the following statements are true regarding basic rules for documentation. Answers: 3 on a question: Prepare adjusting journal entries, as needed, for the following items. A. a. recording depreciation on a long-lived asset b. writing off the portion of an insurance policy that has expired c. recognition of salaries owed to employees for work done during the current period that will be paid during the next accounting period C) Each trial balance amount is used in preparing the financial statements. Tags and test that are not directly displayed on the page are written in _____ section. True: B. A. Prepare the year-end adjusting journal entries at December 31. A) make all the entries a month in advance. The adjusted trial balance is prepared after the financial statements to verify that the numbers are accurate. On January 1, the Seigel Law Firm received a $12,000 cash retainer for legal services to be rendered ratably over the next 6 months. ~Your answer Is correct! The expense recognition (matching) principle aims to record _____ in the same accounting period as the _____that are earned as a result of those cost. Choose the statement below which is true regarding adjustingjournal entries. B. Deleting incorrect entries and crossing them out with a horizontal line. B. Which of the following is not correct regarding the manufacturing overhead budget? Which of the following statements regarding the role of cash in adjusting entries is true? The Supplies account shows a balance of $550, but a count of supplies reveals only $250 on hand at year-end. #7 Financial Statements (1). Adjustments are only made if cash has been received or paid during the period. Adjusting entries are needed every time financial statements are prepared. e. Adjusting entries affect the cash account. D. Adjusting Entries Adjusting Entries This guide to adjusting entries covers deferred revenue, deferred expenses, accrued expenses, accrued revenues and other adjusting journal: At the end of the company’s accounting period, adjusting entries must be posted to accounts for accruals and deferrals. Reversing entries, or reversing journal entries, are journal entries made at the beginning of an accounting period to reverse or cancel out adjusting journal entries made at the end of the previous accounting period. On January 25 the company will write a check to pay those commissions. Adjusting entries can be divided into the following four types. 19. Adjusting journal entries … Adjusting entries are required at the end of each fiscal period to align the revenues and expenses to the “right” period, in accord with the matching principle Matching Principle The matching principle is an accounting concept that dictates that companies report expenses at the same time as the revenues they are related to. Review the following statements and select which is correct regarding a work sheet and formal financial statements. Which of the following statements regarding adjusting entries is not true? D. Adjusting entries generally include one balance sheet and one income statement account. The full amount was credited to the liability account Unearned Legal Fees. D. Adjusting entries always include one balance sheet and one income statement account 23. #6 Adjusting Entries. A. Which of the following statements regarding the trial balance is correct? The proper order of the following steps in the accounting cycle is: a. prepare unadjusted trial balance, journalize transactions, post to ledger accounts, journalize and post adjusting entries. A) Adjustments are needed to ensure that the accounting system includes all of the revenues and expenses of the period. !J Read obo\lt 11115 The Withdrawal's account balance w111 be used in preparing the statement of owner's equity. Accountants must make correcting entries when they find errors. Which of the following statements regarding types of adjusting entries is true? C) program the entries to be made automatically. b.Adjusting entries are optional with accrual basis accounting. B) rotate the responsibility among the accounting staff. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be: answer choices A) A debit to Rent Revenue and a credit to Cash for $2,400. B) An adjusted trial balance is a list of accounts and balances prepared after adjusting entries have been recorded and posted to the ledger. Which of the following is valid IP address? (Deferrals do not … Which of the following statements is true regarding adjusting entries for this liability account? ... An adjusting entry that debits an expense and credits an asset is necessary for: A. D) Financial statements should be prepared directly from … Demonstrate the required adjusting entry of the business by completing the following sentence. "13.Which of the following statements is true regarding adjusting entries?a.Adjusting entries are dated as of the first day of the new accounting period. B. 23. Open ledger accounts for each of the accounts involved, enter the balances as shown in the trial balance, post the adjusting journal entries, and calculate year-end balances. c. Adjusting entries can be used to record both accrued expenses and accrued revenues. D) create a standard adjusting journal entry file. C. Adjusting entries often affect the cash account. a. This is the last step in the accounting cycle. E. Not recording verbal orders or not having them signed. b. This is the fourth step in the accounting cycle. The following adjusting entries were omitted at the end of the month: a. Unbilled fees earned at January 31 $2,200 b. Which of the following statements related to the adjusted trial balance is incorrect? Adjusting entries will not impact a company’s statement of cash flows in a meaningful way. 1) Adjusting entries nearly always involve the cash account andeither a revenue or expense account. A.Total budgeted cash disbursements for manufacturing overhead is equal to the total of budgeted variable and fixed manufacturing overhead. B) Adjustments help to ensure the related accounts on the balance sheet and income statement are up to date and complete. 3 - Reinhardt Company reported revenues of $122,000... Ch. This principle is a major part of the _____process. Reversing entries will be dated as of the first day of the accounting period immediately following the period of the accrual-type adjusting entries. c.Adjusting entries are not posted to the ledger. Which of the following statements regarding adjusting entries isnot correct? 10. Adjusting entries, also called adjusting journal entries, are journal entries made at the end of a period to correct accounts before the financial statements are prepared. Charting that is divided into sections or blocks. Which of the following statements is incorrect in relation to financial statements: A liability should be reported only if there is a present obligation to pay Expenses should be included whether it has been paid for or are yet to be paid for. ACCT 211 Homework 3 Adjusting Accounts for Financial Statements answers complete solutions Complete many different versions to get an A on your grade! A) An accrual adjustment that increases an asset will include an increase in an expense. Which of the following is the correct regarding meta tag in HTML? 5) One way of ensuring that recurring adjusting journal entries are made each month would be to . What is a plant asset? Prior to recording adjusting entries, the Office Supplies account had a … b. journalize transactions, prepare unadjusted trial balance, post to ledger accounts, journalize and post adjusting entries Adjusting Entries – Why Do We Need Adjusting Journal Entries? Adjustments are only made if cash has been received or paid during the period. There are two ways to make correcting entries: reverse the incorrect entry and then use a second In other words, for a company with accounting periods which are calendar months, an accrual-type adjusting entry dated December 31 will be reversed on January 2. 2) Adjusting Entries May Reduce Amounts On The Balance Sheet And Increase Corresponding Revenue Or Expense Accounts On The Income Statement. C) An accrual adjustment that increases an expense will include an increase in assets. ~Your answer is correct. 1) Adjusting Entries Nearly Always Involve The Cash Account And Either A Revenue Or Expense Account. The first item on the statement of cash flows is net income. Adjusting entries: Adjusting entries are the journal entries posted in the books of accounts post the trial balance is prepared but before the preparation of financial statements. B) A deferral adjustment that decreases an asset will include an increase in an expense. Answer: E Adjusting entries that convert assets to expenses: Some cash expenditures are made to obtain benefits for more than one accounting period. 2) Adjusting entries may reduce amounts on the balance sheet andincrease corresponding revenue or expense accounts on the incomestatement. A. To avoid having two entries for December's commissions, it is common practice on the first day of the month following the accrual adjusting entry to record a reversing entry. d.None of these statements are true. Which of the following statements is incorrect... Ch. Supplies used during January 31 $1,800 c. Depreciation of equipment for January $7,500 d. Accrued wages at January 31 $1,500 Required: 1) Journalize the entries to … Adjusting journal entries do not affect the cash account. Problem C The following adjusted trial balance is for Jasper Appliance Repair Company: A. This is because the statement of cash flows is designed to demonstrate a company’s performance without accounting estimates and adjustments. The revenue recognition principle is the basis of making adjusting entries that pertain to unearned and accrued revenues under accrual-basis accounting. d. Prepaid expenses, depreciation, and unearned revenues often require adjusting entries to record the effects of the passage of time. (If no entry is required for a transaction/event, select No journal entry required in the first account field.)a. l!! In accounting/accountancy, adjusting entries are journal entries usually made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred. 3 - Which of the following is true regarding the... Ch. Question: Which Of The Following Statements Regarding Adjusting Entries Is Not Correct? C. Adjusting entries for expenses include a debit to cash. 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