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View Full Version : What is the Adjusting Entries?


Macilia
Jul 17, 2013, 08:36 PM
a) Depreciation of equipment for year $5,000
b) Accrued salaries at year-end $1,600
c) Principal amount borrowed 9/1/2012 $15,000
Annual interest rate of loan 10%
d) Unused supplies at year-end $600
e) Paid 1 year's rent on new studio on 4/1/2012 $6,000
Monthly rent amount $500
f) December utilities unpaid at year-end $100

paraclete
Jul 20, 2013, 01:45 AM
All of the above transactions may be the source of adjusting entries

pready
Jul 22, 2013, 06:48 AM
All of your transactions are adjusting entries.

A. You have to record depreciation for the year.

B. You have to record salaries expense for the end of period.

C. You have to record the interest expense for the loan during the year.

D. You have to record the amount of supplies used during the period.

E. You have to record the amount of rent used during the period.

F. You have to record the utilities used during the period.