ADJUSTING ENTRIES EXPLAINED, ACC 100 Accounting I Week 3 Homework Chapter 3, homework help
Please see attached and solve problems.
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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.
