Examples of Transactions Recorded
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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?
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The solution discusses examples of transactions recorded by a company that might need an adjusting entry.
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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.]
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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 ...
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