0
What is the Utility expenses incurred but not paid adjusting entry?
Wiki User
∙ 13y ago
This is adjusting entry for Accrued Expenses in the current accounting period, where you debit adjusting entry on expenses (Utility Expenses) account and credit adjusting entry on liabilities (Utilities Payable) account.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What is the purpose of adjusting entry?
The purpose of the preparation of adjusting entries is to ensure that revenues are being recorded during the period they are earned and expenses are being recorded during the period they are incurred.
If an adjusting entry is not made for an accrued expense?
If adjusting entry not made then profit will be overstated while the expenses will be understated.
What is the concept of prepaid expenses in adjusting entries and why it is used in preparing accurate financial documents?
Prepaid expenses are those expenses which are paid already but actual expense is not incurred and when actual expense incurred adjusting entry required to adjust prepaids as in acrual accounting income and expense only recorded when they are actually occured when not when the cash are paid so cash payment is not important to be recognise for transaction occuring.
Can you show the journal entry for expenses incurred on food?
debit food expenses / meals and entertainmentcredit cash / bank
An adjusting entry would adjust an expense account so the expense is reported when incurred?
True
What is the purpose of adjusting entry?
The purpose of the preparation of adjusting entries is to ensure that revenues are being recorded during the period they are earned and expenses are being recorded during the period they are incurred.
If an adjusting entry is not made for an accrued expense?
If adjusting entry not made then profit will be overstated while the expenses will be understated.
What is the concept of prepaid expenses in adjusting entries and why it is used in preparing accurate financial documents?
Prepaid expenses are those expenses which are paid already but actual expense is not incurred and when actual expense incurred adjusting entry required to adjust prepaids as in acrual accounting income and expense only recorded when they are actually occured when not when the cash are paid so cash payment is not important to be recognise for transaction occuring.
Can you show the journal entry for expenses incurred on food?
debit food expenses / meals and entertainmentcredit cash / bank
An adjusting entry would adjust an expense account so the expense is reported when incurred?
True
What is the effect of the adjusting entry for Depreciation expense?
The entry increases total assets and increases total expenses
Is audit prepaid expenses entry come in income statement?
Prepaid expenses are not part of income statements, in accrual accounting income and expenses are only shown in income statements when they are actually incurred.
Does a reversing entry reverse an adjusting entry or a transaction entry?
Reversing entry can be make to reverse any entry whether it is actual transaction entry or any adjusting entry.
A company's month-end adjusting entry for Insurance Expense is 1000 If this entry is not made then expenses are understated by 1000 and net income is overstated by 1000?
Yes this is right statement as if some expenses are forgot to record it overstated the net income and reduces the expenses but in actual there is less net income then shown in income statement.
The adjusting entry to adjust supplies was omitted at the end of the year This would effect the income statements by having?
expenses understated and therefore net income overstated
Journal entry in reimbursement of expenses incurred in the conduct of audit?
Reimbursement expenses you keep track separetely with operational expenses if our company pays the expenses the journal entry should be (1) Re-imbursement expenses a/c DR xxx To cash a/c .... xxx (2) As the same expenses we need to re-imburse this expenses from other ABC company ABC company a/c Dr xxx To Re-imbursement expenses A/c xxx In the first Journal we debited the expenses and the second we same credited the expnenses.
Distinguish between an adjusting entry and a reversing entry?
Adjusting entries are made at the end of the accounting period before the financial statements to make sure the accounting records and financial statements are up-to-date. Reversing entries are made on the first day of an accounting period to remove any adjusting entries necessary to avoid the double counting of revenues or expenses.
