Match each transaction with the type of entry that will be required at April 30, the company's year-end.
1. The company transfers revenues of $50,000 and expenses of $32,000 to Retained Earnings.
2. The company makes an entry to allocate the use of equipment during the current account period.
3. The company transfers the balance in the Dividends account of $1,200 to Retained Earnings.
4. The company records income taxes.
5. The weekly payroll of $5,000 to be paid next week is recorded.
A. Accrual adjusting entry.
B. Deferral adjusting entry.
C. Closing entry.
D. Closing entry.
E. Accrual adjusting entry.
Adjusting Entries are journal entries recorded in the accounting books at the end of an accounting period. Common types of adjusting entries are depreciation and accrual of interest expense.
Answer and Explanation: 1
|1. The company transfers revenues of $50,000 and expenses of $32,000 to Retained Earnings.||C. Closing entry.|
|2. The company makes an...|
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fromChapter 22 / Lesson 16
Learn the definition of adjusting entries in accounting, and find examples. Explore the various types of adjusting journal entries, and examine how to do them.