Lesson 3 assignment - Discuss the adjusting and closing processes Provide at least two examples of adjusting entries How are the revenue recognition and

Lesson 3 assignment - Discuss the adjusting and closing...

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Discuss the adjusting and closing processes. Provide at least two examples ofadjusting entries. How are the revenue recognition and matching principlesinvolved? Describe the differences between the unadjusted, adjusted, andpost-closing trial balances.It is important to learn how to journalize and post transactions for a business.It involves with the adjusting and closing process and some others.First, the adjusting entries are recorded at the end of an accounting period toaccurately report net income or loss on the financial statements and to reflectcorrect account balances on the balance sheet. (Kemp & Jeffrey, 2015) Inanother word, it is an accounting entry made at the end of an accountingperiod to assign accounts between two or more accounting periods. Forexample, the recording of depreciation expense is an adjusting entry whichapportions a recorded cost. Also, the recording of prepaid rent expense is anadjusting entry too. In addition, the closing entries zero out the revenue,expense, and dividend accounts, and transfer the balances to the retainedearning account. (Kemp & Jeffrey, 2015) It helps the company to empty everyaccount on its book in order to record the new entries for the new fiscal year.

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