Big River College, a Small, Private College, Is Trying to Categorise

question 21

Essay

Big River College, a small, private college, is trying to categorise its costs in an effort to reduce the overall costs of running the college. The students who attend the college are considered its 'product'.
Required:

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Definitions:

Salaries Expense

An expense recorded to represent wages or salaries paid to employees.

Salaries Payable

The liability account that contains the amounts of any salaries owed to employees, which have not yet been paid.

Supplies Account

An account used to track the costs of small items or materials that are used in the operations of a business.

Adjusting Journal Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the correct period, ensuring the financial statements reflect accurate and up-to-date information.