Assignment
Select ONE of the four following types of adjustments and answer all of the questions below as they relate to the adjustment you have chosen. Remember, your primary posting must be a short essay of at least 250 words that fully explains each part of the question.
1) Record depreciation expense
2)Adjust for supplies usage
3)Adjust prepaid insurance
4)Accrue wages earned but not yet paid
A. Why is this adjusting journal entry prepared?
B. Which accounts are affected? Are they increased or decreased?
C. Which account is debited and which one is credited? How do we determine the amount of the adjustment debit and credit?
D. Are the affected accounts assets, liabilities, owner's equity, revenue or expense accounts?
E. Are these accounts reported on the income statement, statement of owner's equity, or the balance sheet?