Asked by Kristine Mae Almodiel on Jul 22, 2024
Verified
Describe the adjusting entries,including the accounts used,for 1)prepaid expenses,2)depreciation and 3)unearned revenues.
Adjusting Entries
End-of-period accounting insertions to correctly allocate revenues and costs to the specific timeframe in which they occurred.
Prepaid Expenses
Prepaid Expenses are future expenses that have been paid in advance and are recorded as assets on a balance sheet until they are realized as an expense.
Unearned Revenues
Money received by a business for services or goods not yet delivered or rendered to the customer.
- Learn the importance and procedure of creating adjusting entries, along with their consequences for financial reports.
Verified Answer
Learning Objectives
- Learn the importance and procedure of creating adjusting entries, along with their consequences for financial reports.
Related questions
Describe the Types of Entries Required in Later Periods That ...
A Company Receives $360 for a 12-Month Trade Magazine Subscription ...
At Year-End, the Balance in the Prepaid Insurance Account, Prior ...
Adjusting Journal Entries Are Dated on the Last Day of ...
A Company Receives $6,500 for Two Season Tickets Sold on ...