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tsmith27
Feb 10, 2008, 09:08 PM
Inventory of unsued delivery supplies 1,430.
Inventory of unsed office supplies 185.
Lockbox fees earned but not yet recorded and uncollected at the end of the year 816.
Accured but unpaid truck drivers' wages at the end of the year, 5,630 had been earned by aug 31.

And how would I use this in closing the entries.

morgaine300
Feb 10, 2008, 10:18 PM
These are four different adjusting entries, based on several concepts that would take up a good junk of a chapter. I can't really explain an entire chapter to you. You need to have some basic understanding of different types of adjusting entries. Also, even if I wanted to just give answers away (which I won't), I couldn't because you need a couple of balances from a trial balance to do the first two.

But here's a start. You need to know the difference between an accrual and a deferral. An accrual is when the "event" has already happened but the cash is not paid or received until later. By "event" I mean that revenue has been earned or that an expense has been incurred. So you must recognize (record) the revenue or expense on your books. Then where does something go when you earn but have not received the cash yet? And where does something go when you have an expense that you have not paid yet?

See if you can recognize which ones are accruals and take a guess at what the entries might be.