$56,700. 40. However, the salary expenses do not need to be accrued when the payments are made at the end of the month, year, or accounting period. This means these expenses will not appear on the financial statements unless an adjusting entry is entered prior to issuing the financial statements. Prior to the adjusting process, accrued expenses have A) not yet been incurred, paid, or recorded B) been incurred, not paid, but have been recorded C) been incurred, not paid, and not recorded D) been paid but have not yet been incurred 41. Accrued expenses are expenses that have occurred but are not yet recorded in the company's general ledger. The adjusting entry will be dated December 31 and will have a debit to the salary expenses account on the income statement and a credit to … If the bookkeeper doesn’t reverse this accrual enter, he must remember the amount of expense that was previously recorded in the prior year’s adjusting entry and only account for the new portion of the expenses incurred. Adjusting Entries – Why Do We Need Adjusting Journal Entries? Prior to the adjusting process, accrued expenses have Select one: a. been incurred but not yet paid and not recorded b. been incurred, have not been paid, but have been recorded c. not yet been incurred, paid, or recorded d. been paid but have not yet been incurred However, adjusting entries have not been made at the end of the period for supplies expense of $2,200 and accrued salaries of $1,300. If you are making a prior period adjustment to an interim period of the current accounting year, restate the interim period to reflect the impact of the adjustment. Prior to the Adjusting Process, “accrued revenue” has: A. Prior to the adjusting process, accrued revenue has_____. C. $58,000. $54,500. Prior to the adjusting process, accrued expenses have not yet been incurred, paid, or recorded been incurred, not paid, but have been recorded been incurred, not paid, and not recorded been paid but have not yet been incurred a.been earned and not recorded as revenue b.been earned and cash received c.not been earned but recorded as revenue d.not been recorded as revenue but cash has been received See answer Belovedgirl5745 is waiting for your help. Add your answer and earn points. Adjusting entries usually affect at least one: A. 10. Prior period adjustments are adjustments made to periods that are not current period, but already accounted for because there is a lot of metrics where accounting uses approximation and approximation might not always be an exact amount and hence they have to be adjusted often to make sure all the other principles stay intact. Assertions: Completeness: To ensure the completeness of the accruals in the balance sheet, the auditor has to reconcile … Example of an Accrued Expense. B. A company purchases a one-year insurance policy on June 1 for $1,260. Net income, as corrected, is A. The adjusting entry on December 31 is 42. •Prior to the adjusting process, accrued expenses have o been incurred, not paid, and not recorded • Deferred expenses have o not yet been recorded as expenses • The balance in the prepaid rent account before adjustment at the end of the year is $22,636, which represents 8 months' rent paid on December 1. A. Adjusting entries are required at the end of each fiscal period to align the revenues and expenses to the “right” period, in accord with the matching principle Matching Principle The matching principle is an accounting concept that dictates that companies report expenses at the same time as the revenues they are related to. Been earned, and cash received B. Accrued Expenses. D. $55,800 The reversing entry erases the prior year’s accrual and the bookkeeper doesn’t have to worry about it. The net income reported on the income statement is $58,000. Been recorded as an Asset, since cash has been received C. Not been earned, but recorded as revenue D. Been earned, but not yet recorded as revenue 11.
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