Prepare Adjusting Entries for the Following Transactions

question 280

Essay

Prepare adjusting entries for the following transactions. Omit explanations.
1. Depreciation on equipment is €800 for the accounting period.
2. There was no beginning balance of supplies and purchased €700 of office supplies during the period. At the end of the period €100 of supplies were on hand.
3. Prepaid rent had a €1,000 normal balance prior to adjustment. By year end €800 was unexpired.

---

Definitions:

Recognition of Revenue

The process of recording revenue in the financial statements when it is earned and measurable, according to set criteria.

Financial Reporting

Creating reports that unveil the financial standing of a company to its executives, shareholders, and regulatory authorities.

Tax Law

The body of law governing taxation, including regulations on income, corporate, sales, and property taxes, as administered by governmental entities.

Reliability

The degree to which an assessment tool produces stable and consistent results over time.