Unit 2 - Individual Project 2

Unit 2 - Individual Project 2 - Accounting Principles...

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Accounting Principles 1 Running head: Accounting Principles Accounting Principles David Lee Watkins American Intercontinental University Online Professor Sunny Onyiri ACCT205-1004A-09: Principles of Accounting I September 5, 2010
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Accounting Principles 2 Accounting Principles 1) Explain why adjusting entries are necessary. In the accounting process there are several transactions that may not be immediately recorded in the ledger. One type of this transaction would be an insurance premium paid at the end of one accounting period that is for insurance coverage in the next period. The transaction would be shown as a deferred entry in the period in which the Insurance coverage is in effect. 2) Describe the 4 types of adjusting entries, and provide a manufacturing industry example of each. 1) The first is when costs have been recorded that need to be allocated between two or more accounting periods. For example, insurance costs that covers twelve months of coverage.
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This note was uploaded on 05/04/2011 for the course ACCT 205 taught by Professor Shanakoh during the Summer '10 term at AIU Online.

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Unit 2 - Individual Project 2 - Accounting Principles...

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