ADJUSTING ENTRIES EXPLAINED, ACC 100 Accounting I Week 3 Homework Chapter 3, homework help
ADJUSTING ENTRIES EXPLAINED, ACC 100 Accounting I Week 3 Homework Chapter 3, homework help
Please see attached and solve problems.
ADJUSTING ENTRIES EXPLAINED
ADJUSTING ENTRIES ARE OF FOUR TYPES
Prepaid Expense
Prepaid Expense (or Inventory) dr
Cash cr
When the Prepaid Expenditure is made.
AND/OR
Expense dr
Prepaid Expense (or Inventroy) cr
When the actual expense consumed is determined (usually at the end of a period.)
UNEARNED REVENUE
Cash dr
Unearned revenue cr
When a cash payment for unearned revenue is received.
and/or
Unearned revenue dr
Revenue cr
When the revenue is considered to have been earned
ACCRUED REVENUE
Accounts receivable dr
Revenue cr
When a sale has occurred but cash has not been received from the customer
ACCRUED EXPENSE
XXX Expense dr
xxx Payable cr
When an expense has been incurred but not paid for.