Accounting Adjusting Entries Tkelly

Adjusting entries should be made

• Prior to posting to the General Journal

• Prior to posting to the General Ledger

• After posting to the General Ledger

• After Posting to the Balance Sheet

After completing adjustments the worksheet must

• Still be in balance

• Contain only negative numbers

• Have more debits than credits

• Havre credits than debits

If you paid for insurance in advance for a year, and some time elapses, what account will need to be adjusted

• Supplies

• Depreciation Expense

• Prepaid Insurance

• Equipment

Adjusting entries are required due to

• Mistakes

• Changes in circumstances, for example increased depreciation

• Inventory adjustments, such as when inventory is stolen or missing.

• All of the above

After adjustments have made if the debits and credits are in balance:

• There have been no posting errors.

• There still could have been posting errors.

• The company is profitable.

• GAAP principles have been followed.

If an accountant realizes an earlier posting mistake during an accounting period, she should:

• Go back and erase the original entry and then replace it correctly.

• Inform the IRS

• Make (an) adjusting entry(ies)

• None of these

Which of these would likely require adjusting entries

• Expiration of prepaid insurance.

• The accrual of unpaid expenses.

• Receipt of unearned income

• All of these would require adjustments.

Adjusting entries are required when using

• The cash basis of accounting

• The accrual basis of accounting

• Double entry accounting

• Both B and C

Recognizing that a loss of value has occurred to vehicles during an accounting period requires a debit to

• Vehicles

• Cash

• Accounts Payable

• Depreciation Expense

On January 1 a company purchased billboard advertising for 12 months for $6,000. On January 31, an adjusting credit was made to the __________account for $__________.

• Prepaid Advertising/$500

• Advertising Expense/$500

• Cash/$1,000

• Accrued Advertising/$500