Explore BrainMass

Explore BrainMass

    Examples of Transactions Recorded

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    b) What are two or three examples of transactions recorded by your company that might need an adjusting entry? What do you think the original entry would be (accounts debited/credited, and description of the entry), and what do you think the adjusting entry should be (accounts debited/credited, and description of the entry)? An example of what I'm looking for would be purchasing an asset, and recording depreciation thereon.... [If you are not currently with a company, suggest what you believe would be appropriate transactions, based upon the text, lecture, and your experience.]

    Details: a) What accounting assumptions necessitate the use of adjusting entries? What accounts are subject to adjusting journal entries?

    © BrainMass Inc. brainmass.com June 3, 2020, 5:11 pm ad1c9bdddf
    https://brainmass.com/business/accounting/examples-transactions-recorded-16980

    Solution Preview

    b) What are two or three examples of transactions recorded by your company that might need an adjusting entry? What do you think the original entry would be (accounts debited/credited, and description of the entry), and what do you think the adjusting entry should be (accounts debited/credited, and description of the entry)? An example of what I'm looking for would be purchasing an asset, and recording depreciation thereon.... [If you are not currently with a company, suggest what you believe would be appropriate transactions, based upon the text, lecture, and your experience.]
    ---------
    Details: a) What accounting assumptions necessitate the use of adjusting entries? What accounts are subject to adjusting journal entries?

    Accounting divides the economic life of a business into artificial time periods, and this is known as the period assumption. Accounting periods are generally a month, a quarter, half a year or a year (financial year). This accounting assumption necessitates the use of adjusting entries because a bookkeeping entry made at the end of an accounting period to assign income and expenses to a different period. These entries are made under the accrual accounting systems in order to correctly reflect the timings of income and expenditure ...

    Solution Summary

    The solution discusses examples of transactions recorded by a company that might need an adjusting entry.

    $2.19

    ADVERTISEMENT