Accounting - . Explain why adjusting entries are necessary...

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You are an accountant in a medium-sized manufacturing company. You have been asked to mentor an accounting  clerk who is new to your accounting department.    Explain why adjusting entries are necessary. Describe the 4 types of adjusting entries, and provide a manufacturing industry example of each. Describe how these entries would be recorded in a computerized accounting system. Describe 2 ethical issues that could result from the preparation of these manufacturing entries. 1 In assurance of paid advances the expenses are adjusted at the end of each period: Example-On January  1 st  the factory overhead given was 12,000 for 12 months ending at the expiration period date of June 30 th . A,)Current overhead – Insurance Expenses = Dr. 6,000 B.)Insurance = Cr. 6,000 2 The accepted sale made in advance is for 40,000. Adjusted solely for the transaction of goods., when goods have been delivered. A following adjusting journal entry will be
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This note was uploaded on 10/06/2011 for the course ENGLISH 102 taught by Professor Hopkin during the Spring '10 term at Abraham Baldwin Agricultural College.

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Accounting - . Explain why adjusting entries are necessary...

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