Which of the following is true regarding adjusting entries? a.Adjusting entries are optional with accrual-basis accounting. b.Adjusting entries are dated as of the first day of the new accounting period. c.Adjusting entries are not posted to the ledger. d.Adjusting entries are usually recorded after the end of the period but are dated as of the last day of the period.

Certain adjusting entries made at the end of an accounting period are reversed at the beginning of the following period. Required: Analyze the following four adjusting entries made on December 31, and determine whether a reversing entry is needed. Date Description Reversing entry Reversing entry Debit Credit necessary not necessary Dec. 31 Interest Receivable 1,200 Interest Revenue 1,200 31 Deferred Insurance 965 Insurance Revenue 965 31 Salaries Expense 150 Salaries Payable 150 31 Deferred Rent Revenue 1,550 Rent Revenue 1,550 G

The Yellow Canoe Company made year-end adjusting entries affecting each of the following accounts: InterestRevenue (credited); Depreciation Expense (debited); Unearned Rental Revenue (debited); and Prepaid Insurance(credited). Which account is likely to appear in Yellow Canoe’s reversing entries?a. Depreciation Expenseb. Interest Revenuec. Prepaid Insuranced. None of these answer choices is correct.

Under the direct write-off method, uncollectible accounts expense is recognized Multiple Choice O ① in an adjusting entry at the end of the accounting period. when an account is determined to be uncollectible. when the allowance account has a zero balance. in a closing entry at the end of the accounting period.

Which of the following is true regarding adjusting entries? O a. Adjusting entries are dated as of the first day of the new accounting period. O b. Adjusting entries are not posted to the ledger. O c. Adjusting entries are usually recorded after the end of the period but are dated as of the last day of the period. O d. Adjusting entries are optional with accrual-basis accounting.

RSA Corporation had the following items in inventory as at December 31, 2023: Item No. A1 B4 C2 D3 Quantity (a1) 100 120 140 160 Unit Cost $3.00 2.00 8.00 7.00 NRV $3.30 1.90 9.00 6.80 Assume that RSA uses a perpetual inventory system, and that none of the inventory items can be grouped together for accounting purposes. Prepare the year-end adjusting entry required to adjust to the lower of cost or net realizable value on an item-by-item basis using the direct method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is

On June 1, Sheffield Company borrows $111,000 from First Bank on a 6-month, $111,000, 8% note. Prepare the entry on June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 1 List of Accounts Prepare the adjusting entry on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 30 List of Accounts

Pp.53. Subject :- Account

GIVE A DETAILED ANSWER  Describe the effect on the financial statements when an adjustment is prepared that records (a) unrecorded revenue and (b) unrecorded expense. On the basis of what you have learned about adjustments, why do you think that adjusting entries are made on the last day of the accounting period rather than at several times during the accounting period?