Chapter 3 Adjustments and Closing Process- Excel Worksheets

Chapter 3 Adjustments and Closing Process- Excel Worksheets...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ADJUSTING JOURNAL ENTRIES 1. DEFERRED EXPENSES(Prepaid Expenses) Resources paid for prior to receiving the benefits. Example: Prepaid Insurance On October 1, 2007, A Company paid $12,000 to cover insurance for October through March 2008. A Company recorded the expenditure as Prepaid Insurance on October 1. What is the adjusting entry on December 31, 2007? Adjusting Journal Entry: If Adjusting entry is omitted Income Statement Expenses : Insurance Expense Prepaid Insurance Net Income : Balance Sheet Assets: Equity: Example: Prepaid Rent On November 1, 2007, a tenant paid $3,600 for one year’s rent in advance starting November 1. What is the adjusting entry on Dec 31? Adjusting Journal Entry: If Adjusting entry is omitted Income Statement Expenses : Net Income : Rent Expense Prepaid Rent Balance Sheet Assets: Equity: Example: Supplies During 2007, Evergreen Company purchased $15,000 of supplies. Evergreen recorded the expenditures as supplies. On December 31, a count of the supplies indicated $2,500 on hand. What adjustment is required?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/01/2008 for the course ACCT 2101 taught by Professor Bhan during the Fall '07 term at UGA.

Page1 / 4

Chapter 3 Adjustments and Closing Process- Excel Worksheets...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online