D1 The term adjusting entries refers to a very important step in the accounting cycle. Explain...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
D1 The term "adjusting entries" refers to a very important step in the accounting cycle. Explain when, why, and how the adjusting process is used. Provide an example to clarify your statements. Adjusting entries are crucial in the accounting process because it tracks expenses and revenue as they are incurred. This process is done to properly measure net income loss and assets" Nobles, Mattison, & Matsumura (2014). For Example, A bar owner purchases inventory on 7/21. On the 15h the owner hosts a special event that incurs a supply expense of $1000. At the end of the month the owner must adjust the ledger and trial balance to show for the inventory used throughout the month so that he can reorder and restock appropriately. Nobles, T., Mattison, B., & Matsumura, E. M. (2014). Horngren's accounting the financial chapters (10th ed.). Boston: Pearson. D2 The videos are still the leading contender for learning in this course, the book does have helpful notes that are printed on the pages like writing. It's interesting to see each of these processes continuously building on each other. Accounting with a reversing entry would be very beneficial in time management. One thing I found helpful was the note about adjusting and accruals entries on page 151 in the textbook that said "Adjusting entries never involve cash accounts and they either increase a revenue account or increase an expense account" (2014). Nobles, T., Mattison, B., & Matsumura, E. M. (2014). Horngren's accounting the financial chapters (10th ed.). Boston: Pearson. D1 The term "adjusting entries" refers to a very important step in the accounting cycle. Explain when, why, and how the adjusting process is used. Provide an example to clarify your statements. Adjusting entries are crucial in the accounting process because it tracks expenses and revenue as they are incurred. This process is done to properly measure net income loss and assets" Nobles, Mattison, & Matsumura (2014). For Example, A bar owner purchases inventory on 7/21. On the 15h the owner hosts a special event that incurs a supply expense of $1000. At the end of the month the owner must adjust the ledger and trial balance to show for the inventory used throughout the month so that he can reorder and restock appropriately. Nobles, T., Mattison, B., & Matsumura, E. M. (2014). Horngren's accounting the financial chapters (10th ed.). Boston: Pearson. D2 The videos are still the leading contender for learning in this course, the book does have helpful notes that are printed on the pages like writing. It's interesting to see each of these processes continuously building on each other. Accounting with a reversing entry would be very beneficial in time management. One thing I found helpful was the note about adjusting and accruals entries on page 151 in the textbook that said "Adjusting entries never involve cash accounts and they either increase a revenue account or increase an expense account" (2014). Nobles, T., Mattison, B., & Matsumura, E. M. (2014). Horngren's accounting the financial chapters (10th ed.). Boston: Pearson.
Expert Answer:
Answer rating: 100% (QA)
While Preparing Final accounts at the end of every accounting period we come across certain problems The expenses of current year are still payable or ... View the full answer
Related Book For
Applying International Financial Reporting Standards
ISBN: 978-0730302124
3rd edition
Authors: Keith Alfredson, Ken Leo, Ruth Picker, Paul Pacter, Jennie Radford Victoria Wise
Posted Date:
Students also viewed these accounting questions
-
Explain why adjusting entries are necessary in accrual accounting but not required when the cash basis of accounting is used.
-
Explain the term server and provide an example of server-based processing; explain the term client and provide an example of client-based processing.
-
Provide an example of an aggressive accounting practice. Why is this practice aggressive?
-
Middleton Spas provides the following data for the year just ended on December 31. Requirement Prepare the operating activities section of Middleton Spas' statement of cash flows for the year just...
-
Indicate whether each of the following statements is true or false by writing T or F in the answer column. 1. Unethical behavior has not been a problem in society until recent times. 1. ___________...
-
In a lead compensator design, a) \(\tau=z p\) b) \(\tau=1 / z\) c) \(\tau=1 / p\) d) \(\tau=p z\)
-
How a lawyers fee is charged?
-
The Parish County government supervisors are considering the purchase of a small, used airplane to save on travel costs. The plane will cost $400,000 and can be sold in 5 years for 20% of the...
-
JBL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, JBL granted options...
-
A company has developed a new product. It needs to decide whether or not to product test and market test before launch, and has been advised that, even though these processes do cost money, they...
-
From the planning (static) budget: Sales = 8,000 units, Variable expenses per unit = $150.00, contribution margin (CM) % = 25.0%, and fixed expenses = $100,000. Compute the flexible budget net income...
-
Sam's extended family spends $3,200 per month on wine and beer. Their utility function is given by U = 200WB, where W represents the number of bottles of wine that they buy, and B represents the...
-
Following is information summarizing the transactions of the Art League for the year ended June 3 0 , 2 0 2 3 . for educational workshops, $ 7 , 0 4 4 ; and sales of members' art, $ 1 2 , 0 8 0 ,...
-
Product Customization - android and IOS platforms Innovation Price Comparison pricing- Alibaba subscription Promotion Social media - Chevrolet influencers. a- Factors affecting marketing mix due to...
-
Macropoland has a natural rate of unemployment at about 4.5% and its long run average of inflation over time has been about 2%. This means that no matter what happens in the short run, the long-run...
-
Write a complete assembly program that evaluates the following IF statement: IF (A - B) 10, 20, 30 1. The program branches to statement 10 if A - B <0 and performs an OR operation over A and B. 2....
-
Your teams equipment is failing and becoming a safety hazard. Recent budget cuts have reduced regular equipment servicing. Youre meeting with leadership today to discuss the problem. What should you...
-
Suppose the government bond described in problem 1 above is held for five years and then the savings institution acquiring the bond decides to sell it at a price of $940. Can you figure out the...
-
What are some internal indicators of impairment?
-
List the four key steps.
-
Explain why key management personnel are regarded as related parties.
-
Assume that vapor pressure can be calculated from the Antoine equation and that Raoult's law can be used to calculate K values. For a binary flash system, derive an analytical expression for the drum...
-
Analytically solve the Rachford-Rice equation for V/F for a binary system.
-
Determine the effect of pressure on the temperature, separation, and diameter of a flash drum.
Study smarter with the SolutionInn App