Adjusting Entries Reed Co. Wishes to Record Receipts and Payments in Such

question 73

Essay

Adjusting entries
Reed Co. wishes to record receipts and payments in such a manner that adjustments at the end of the period will NOT require reversing entries at the beginning of the next period.
Instructions
Record the following transactions in the desired manner; as well, record the adjusting entry on December 31, 2020. (Two entries for each part.)
1. An insurance policy for two years was purchased on April 1, 2020, for $ 18,000.
2. Rent of $ 12,000 for six months for a portion of the building was received on November 1, 2020.

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Definitions:

Psychologists

Professionals specializing in the science of behavior and mind, embracing all aspects of conscious and unconscious experience as well as thought.

Basic Emotions

Fundamental emotions that are hard-wired in humans since birth and universally recognized, including joy, surprise, sadness, anger, fear, and disgust.

Psychologists

Professionals who study mental processes and behavior by observing, interpreting, and recording how people relate to one another and to their environments.

Cultural Variations

Differences in practices, beliefs, and values among cultures, affecting behaviors, traditions, and ways of life.