A the net amount at whic h an as s et is c arried in

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Unformatted text preview: The net amount at whic h an as s et is c arried in the ac c ounting rec ords as dis tinguis hed from its mark et value. b. An ac c ounting c onc ept that may jus tify departure from other ac c ounting princ iples for purpos es of c onvenienc e and ec onomy . c . The offs etting of revenue with ex pens es inc urred in generating that revenue. d. Revenue earned during the c urrent ac c ounting period but not y et rec orded or billed, whic h requires an adjus ting entry at the end of the period. e. Entries made at the end of the period to ac hieve the goals of ac c rual ac c ounting by rec ording revenue when it is earned and by rec ording ex pens es when the related goods and s ervic es are us ed. f. A ty pe of ac c ount c redited when c us tomers pay in advanc e for s ervic es to be rendered in the future. g. A balanc e s heet c ategory us ed for reporting advanc e pay ments of s uc h items as ins uranc e, rent, and offic e s upplies . h. An ex pens e repres enting the s y s tematic alloc ation of an as s et's c os t over its us eful life. http://ezto.mhecloud.mcg r aw- hill.com/hm_accounting .tpx?todo= pr intview Book value Materiality Matc hing princ iple Unrec orded revenue Adjus ting entries Unearned revenue Prepaid ex pens es None 1/16 1/23/2014 2. Assig nment Pr int View aw ar d: 1 out of 1.00 point Sec urity Servic e Company adjus ts its ac c ounts at the end of the month. On November 30, adjus ting entries are prepared to rec ord: a . Deprec iation ex pens e for November. b. Interes t ex pens e that has ac c rued during November. c. Revenue earned during November that has not y et been billed to c us tomers . d. Salaries , pay able to c ompany employ ees , that have ac c rued s inc e the las t pay day in November. e . The portion of the c ompany 's prepaid ins uranc e that has ex pired during November. f. Earning a portion of the amount c ollec ted in advanc e from a c us tomer, Harbor Res taurant. Indic ate the effec t of eac h of thes e adjus ting entries on the major elements of the c ompany 's inc ome s tatement and balanc e s heet—that is , on revenue, ex pens es , net inc ome, as s ets , liabilities , and owners ' equity . Organiz e y our ans wer in tabular form, us ing the c olumn headings s hown and the s y mbols I for inc reas e, D for dec reas e, and NE for no effec t. The ans wer for adjus ting entry a is provided as an ex ample. Inc ome Statement Adjus ting Entry a b c d e f Revenue – NE NE I NE NE I Ex pens es Balanc e Sheet = I I NE I I NE Net Inc ome D D I D D I As s ets = D NE I NE D NE Liabilities + NE I NE I NE D Owners ' Equity D D I D D I W orksheet Learning Objective: 04-03 Prepare adjus ting entries to convert as s ets to expens es . Learning Objective: 04-06 Prepare adjus ting entries to accrue uncollected revenue. Learning Objective: 04-01 Explain the purpos e of adjus ting entries . Learning Objective: 04-04 Prepare adjus ting entries to convert liabilities to revenue. Learning Objective: 04-09 Prepare an adjus ted trial balance and des cribe its purpos e. Learning Objective: 04-0...
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This note was uploaded on 01/23/2014 for the course ACC 111 taught by Professor Angela during the Fall '08 term at Delaware County CC.

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