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Unformatted text preview: 2009-09-141ADJUSTING & CLOSING ENTRIES2009-09-142The Accounting CycleAdjusting and Closing Entries Topic SlidesTransactionsUnadjusted Trial BalanceAdjusting EntriesAdjusted Trial BalanceClosing EntriesFinancial Statements2009-09-142009-09-142Adjusting Entries•Purpose:sTo update the records•Ensure that revenues are recorded in the period earned•Ensure that expenses are recorded in the period incurred•Prepared at the end of the periodsIt would be too time consuming to record adjustments every dayAdjusting and Closing Entries Topic Slides2009-09-14Adjusting Entries SummaryType of AdjustmentExample(s)Entry During the PeriodAdjusting EntryDeferred RevenueUnearned revenueDR CashCR Unearned RevenueDR Unearned RevenueCR RevenueDeferred ExpenseAmortizationPrepaid expenses:InsuranceRentSuppliesDR AssetCR Cash or A/PDR ExpenseCR AssetAccrued RevenueInterest ReceivableNo entryDR AssetCR RevenueAccrued ExpenseInterest PayableWages PayableTaxes PayableNo entryDR ExpenseCR LiabilityAdjusting and Closing Entries Topic Slides2009-09-142009-09-14...
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This note was uploaded on 12/02/2010 for the course MOS 1220A taught by Professor Giddens during the Spring '10 term at UWO.
- Spring '10