The Following Schedule Shows the First Month's Transactions of the Bill

question 220

Essay

The following schedule shows the first month's transactions of the Bill Blue Real Estate Company:
Describe the most likely reason(s)for each transaction.

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Definitions:

Adjusting Entry

An accounting entry made at the end of a period to assign revenues to the period in which they are earned and expenses to the period in which they occur.

Create Deferral

The process of delaying the recognition of revenue or expenses to a future period to align with the accrual basis of accounting.

Insurance Policy

An insurance policy is a legal contract between an insurer and the insured, outlining the terms, conditions under which the insurer agrees to compensate the insured for specific losses.

Ending Retained Earnings

This is the total amount of net income left over for a company after it has paid out dividends to its shareholders, shown at the end of a financial period.