Which of the following is true about adjusting entries?

Prepare an answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance sheet category and on net income by entering for each account affected the account name and amount and indicating whether it is an addition (+) or a subtraction (-). Transaction a has been done as an illustration. Net income is not affected by every transaction. In some cases only one column may be affected because all of the specific accounts affected by the transaction are included in that category. a. Accrued interest revenue of $30 on a note receivable. b. Determined that the Allowance for Bad Debts account balance should be increased by $2,050. c. Recognized bank service charges of $22 for the month. d. Received $29 cash for interest accrued in a prior month. e. Purchased 3 units of a new item of inventory on account at a cost of $31 each. Perpetual inventory is maintained. f. Purchased…

"How does adjusting entries affect the six main categories of accounting? Think about what accruals and deferrals do both individually to accounts and overall to the financial statements."

Which statement is true about an adjusted trial balance? Multiple Choice Balance sheet items are presented before income statement items. It is prepared before adjusting entries. Accumulated depreciation should equal depreciation expense. Revenue accounts and expense accounts should not appear on the adjusted trial balance.