Principles of Accounting 1 American InterContinental University I have been asked by my supervisor to mentor a new accounting clerk in my department‚ I am hoping that when I’m done mentoring this person that they will understand accounting better. I am also hoping that my supervisor will be proud of me‚ and continue asking me to mentor new people‚ and hopefully give me a raise or a promotion. To better understand accounting we need to know why adjusting entries are so important to a business
Premium Generally Accepted Accounting Principles
BASICS OF ADJUSTING ENTRIES Study Objectives—after studying the chapter‚ you should be able to: 1. Explain the time period assumption. 2. Explain the accrual basis of accounting. 3. Explain why adjusting entries are needed. 4. Identify the major types of adjusting entries. 5. Prepare adjusting entries for deferrals (prepayments). 6. Prepare adjusting entries for accruals. 7. Describe the nature and purpose of an adjusted trial balance. 8. Prepare adjusting entries for the
Premium Generally Accepted Accounting Principles Depreciation
ISSUES IN ACCOUNTING EDUCATION Vol. 27‚ No. 2 2012 pp. 493–524 American Accounting Association DOI: 10.2308/iace-50124 How Adjusting Entries Affect the Quality of Financial Reporting: The Case of Frosty Co. Jason C. Porter ABSTRACT: Recent accounting scandals have emphasized the need to think beyond debits and credits. Accounting students must understand the effects of transactions on a company’s financial position‚ as well as the pressures and incentives they will someday face to misrepresent
Premium Balance sheet Revenue Accountancy
Kyle Jarman Group B Topic 4: Adjusting Entries What are the 4 different Adjusting Entries?: Adjusting entries are classified as either deferrals or accruals. Each class has two subcategories: Prepaid Expenses‚ Unearned Revenues‚ Accrued Revenues and Accrued Expenses. What accounting assumptions necessitate the use of adjusting entries?: Some events are not recorded daily because it is not efficient to do so. Some costs are not recorded during the accounting period because they expire
Premium Generally Accepted Accounting Principles Accounts receivable Revenue
QUIZ CHAPTER 3 ACTG 500 BE 161 Prepare adjusting entries for the following transactions. Omit explanations. 1. Depreciation on equipment is $800 for the accounting period. 2. There was no beginning balance of supplies and purchased $500 of office supplies during the period. At the end of the period $80 of supplies were on hand. 3. Prepaid rent had a $1‚000 normal balance prior to adjustment. By year end $600 was unexpired. Solution 161 |1 |Depreciation Expense
Premium Generally Accepted Accounting Principles
Adjusting Entries – Examples Let’s work with some examples. We are working with a one year accounting period that ends on 12/31/X2. Let’s use a three step process. Step 1 – Analyze the transaction. Step 2 – Record in the journal. Step 3 – Post to the ledger. Example 1: On 12/31/X2 (before the adjusting process)‚ Supplies‚ an asset‚ has a balance of $2‚500. Employees take a physical account of the supplies on hand. That physical count reveals that $1‚200 of supplies remains. Step 1 ‐‐ The balance
Premium Depreciation Generally Accepted Accounting Principles Balance sheet
Adjusting Entries Yvenie Desire ACCT205-1203A-11 June 9‚ 2012 Adjusting Entries Welcome to the company and as an accounting clerk for the department you will be working a lot with the accounting department and with me. I will be mentoring you on certain aspect of accounting and what needs to be done. First we’ll get started with why adjusting entries are necessary. “Adjusting entries ensures that the correct amount of revenues and expenses are recorded in a specified time period.” (Editorial
Premium Generally Accepted Accounting Principles Double-entry bookkeeping system
of the Kansas Union. Complete this packet prior to attending the review!!! Short Answer 1. State the fundamental accounting equation. 2. What are the two components of stockholder’s equity? 3. What is the formula for current ratio‚ quick ratio‚ debt ratio‚ and working capital? 4. What is the group that presently creates accounting standards? 5. What gives the board of directors the right to change a company’s CEO? 6. What three things
Premium Generally Accepted Accounting Principles 1966 Balance sheet
Britney Jackson ENGL 607 Journal Entry 4 It is the eighth week of my Composition Studies class. I am shocked that it is already the end of the sub-term. This course has passed quickly. I have learned so much about how to teach writing. During just these last two weeks‚ I have learned how about peer writing groups‚ teaching style‚ revision‚ and evaluating students’ work. I have also had the opportunity to read the writing of three students and evaluate that writing for an assignment. Through the
Free Education Teacher Pedagogy
Adjusting to Terrorism Cielz del Mundo CJA/454 February 16‚ 2015 John Parroconni Adjusting to Terrorism There are many different government agencies in the United States that help protect and secure the American airports‚ government buildings‚ communities‚ and the nation from any dangerous threats facing the United States of America. The federal bureau of investigation os one of the top agencies that fight international and domestic terrorists and terrorism threats inside and outside of the United
Premium Federal Bureau of Investigation United States Terrorism