True or false: An adjusting entry to a prepaid expense is required to recognize expired expense. An adjusting entry would adjust an expense account so that the expense is reported when incurred. a. True b. False The reversing entry for an expense accrual will require...
Inmakingadjustingentryforprepaidexpenses,an expenseaccountisdebitedandtherelatedasset accountiscreditedfortheportionofthe prepaymentthatrepresentstheexpenseinthe currentaccountingperiod. Forexample,anadjustingentrytoapportiontheprepaid insurancethathasexpiredduringtheperiodisasfollows: InsuranceExpensexxx PrepaidInsurance...
For example, an adjusting entry to apportion the prepaid insurance that has expired during the period is as follows: Insurance Expense xxx Prepaid Insurance xxx Another example of this type of adjustment is to record office supplies expense, as shown in the text. 2. Depreciation A capital asset...
• $3,000 of worth prepaid rent expired during the month of June. Instructions for adjusting entries 1) Record the end of month adjusting entries in the general journal. 2) Post the adjusting entries from the general journal to the general ledger ...
Each entry adjust income and expenses to match the current period usage. The journal entry will divide income and expenses into the amounts that were used in the current period and defer the amounts that are going to be used in the current period. ...
The adjusting entry will be: Dr. Unearned Revenue 25000 Cr. Service Revenue 25000 Converting assets to expenses is to charge the expired portion of prepaid expenses to expense. Example: On July 1, 2004, Smith Inc. paid $20000 for whole year’s rent covered from 1stof July to 30th ...
An adjusting journal entry occurs at the end of a reporting period to record any unrecognized income or expenses for the period.
I f the supplies are charged directly to an expense when purchased, then an adjusting entry is necessary at the end of the reporting period to record as an asset the supplies still on hand.The entry for the supplies still on hand is:Supplies Dr Supplies Expense Cr 7. On 31 March, ...
Prepaid rent: On April 3, prepaid rent for three months, $3000. Apr. 3 Dr Prepaid rent Cr Cash 3000 3000 Apr Apr. 30 May Jun 1000 1000 Dr Rent expense Cr Prepaid rent -reflect the amount expired/used up 2013-4-13 chapter 3-adjusting process-ym 19 Prepaid Expenses: Illustrations At ...
On December 31 How to prepare adjusting entry for X company. Dr.Unearned rent revenue $2,000 Cr. Rent Revenue Earned $2,000 5.2.3 Accruing Unrecorded Expenses计提未记录的费用 Example 5: Accrued Salaries应计工资 Assume that April 30 falls on the Tuesday for the last weekly payroll period....