1) Describe the 4 types of adjusting entries and provide a manufacturing (mfg.) industry example of each.2) Explain why adjusting entries are necessary.3) Describe how these entries would be recorded in a computerized accounting system.4) Describe 2 ethical issues that could result from the preparation of these mfg. entries.Answers due by: Thur 11/18 @9pm
I got it, will work it tomorrow.
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a) Explain why adjusting entries are necessary. Adjusting journal entries are made at the end of each closing period to adjust the account balances. Most times, this is necessary in order to achieve a clean cut-off at the end of the accounting period and to ensure the accounts are complete and accurate. Current account balances may not represent correct balances because mistakes were identified in the posting of transactions and/or the accounting records are not updated to reflect new transactions or amount changes in previous transactions. Examples would include amounts posted to the wrong accounts and timing differences in recognizing revenues and expenses between the accrual and the cash basis of accounting. (Adjusting JE, 2010) Adjusting entries can be either temporary or permanent. If the entry is temporary at some point the adjusting entry will be reversed or another adjusting entry will be made to the account. b) Describe the 4 types of adjusting entries, and provide a manufacturing industry example of each. Basic types of adjusting journal entries:
15 years experience in business as both accounting and auditing management
Hi, I just posted a new question with For: Karla (CPA) preceding the question.
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