Flashcards in Bookkeeping 22 Deck (6)
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1
Q
- What is the last step for completing the Worksheet?
A
You need to enter each ADJUSTMENT in the GENERAL JOURNAL.
2
Q
- How do you recognize the ADJUSTMENTS that were made in the Worksheet so they can be transferred to the General Journal?
A
They are the items that were identified with a letter inside parenthesis (x) in the ADJUSTMENT columns.
3
Q
- What are the rules for ADJUSTING the Journal Entries?
A
THERE ARE THREE:
- To adjust a PREPAID ITEM
- To adjust a PAYABLE.
- To show a DEPRECIATION adjustment.
4
Q
- How do you make the adjustment for a PREPAID ITEM? To adjust a prepaid item that has been consumed through the passage of time, you:
A
INCREASE THE EXPENSE with a Debit and DECREASE the asset with a Credit:
Rent Expense………Dr.
Prepaid Rent………Cr.
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5
Q
- How do you make the ADJUSTMENT for a PAYABLE?
A
Increase the EXPENSE with a DEBIT and increase the PAYABLE with a CREDIT:
Salaries Expense………Dr
Salaries Payable……Cr
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6
Q
- How do you show DEPRECIATION adjustment?
A
Increase the EXPENSE with a DEBIT and increase ACCUMULATED DEPRECIATION with a CREDIT.
Depreciation Expense……Dr
Accumulated Depreciation….Cr
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