A. No adjusting entry is required because the revenue has already been earned prior to the ending period.
B : 3 months revenue was collected in advance on December 1st
Effect : decrease the liability, increase the revenue earned and increase in owner’s equity.
C :This entry is required to record the revenue which we have earned
Effect : increase in asset, increase the revenue and increase in owner’s equity.
D : No adjusting entry is required because insurance policy will start from 2, January 2010 and payment of unexpired insurance has already been recorded .
E : this entry entry is required because the depreciation of asset recorded
Effect : it increase the expense , decrease in revenue and the owner’s equity also decreases .
F : this entry required because salaries have been earned by employes but not yet have been recorded.
Effect : it will increase liabilities decrease in revenue and owner’s equity also decrease.
B : 3 months revenue was collected in advance on December 1st
Effect : decrease the liability, increase the revenue earned and increase in owner’s equity.
C :This entry is required to record the revenue which we have earned
Effect : increase in asset, increase the revenue and increase in owner’s equity.
D : No adjusting entry is required because insurance policy will start from 2, January 2010 and payment of unexpired insurance has already been recorded .
E : this entry entry is required because the depreciation of asset recorded
Effect : it increase the expense , decrease in revenue and the owner’s equity also decreases .
F : this entry required because salaries have been earned by employes but not yet have been recorded.
Effect : it will increase liabilities decrease in revenue and owner’s equity also decrease.
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