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WhatsApp Image 2019-07-29 at 5.03.33 PM (6).jpeg - 464915...

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Unformatted text preview: 464915 Chapter 04 - Adjustments, Financial Statements, and the Quality of Earnings CHAPTER 4 ADJUSTMENTS, FINANCIAL STATEMENTS, AND THE QUALITY OF EARNINGS 20 HANDOUT 4 - 1 tort ADJUSTING ENTRIES AND POSTING TO T-ACCOUNTS Prepare the required adjusting journal entry for each situation as of December 31 of the current year. See ien the last page for the unadjusted account balances shown in T-accounts. aitt (a) Suppose Deana's had received a $1,800 shipment of supplies in September of the current year. When counting the supplies on December 31 of the current year, Deana's found only $800 worth of supplies on hand. Debit and credit the accounts affected. Dec. 31 Suppliese Expense 1,900 Supplies 1,000 Ensure the equation still balances and debits = credits. Assets Liabilities + Stockholders Equity Supplies (1,000) Supplies Spend 1,090 (b) Suppose Deana's had paid $12,000 for six months' rent on November 1 of the current year. As of December, 31 of the current year, two months' (November & December) prepaid rent has expired. Debit and credit the accounts affected. Dec. 31 Rent Expense (E - SE) 4,000 Prepaid Rent (- A ) 4,000 Ensure the equation still balances and debits = credits. Assets Liabilities + Stockholders Equity PrepaidRant 4 DOD 4:000 12, 100 : 6 2,000 per month 4-1 0 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part....
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  • Fall '12
  • MayYueZhang
  • Generally Accepted Accounting Principles, Double-entry bookkeeping system, Deana

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