Chapter 10

Question 1

Balance day adjustments

Answer 1

Some details are not included in ledgers such as stock loss/gain, prepaid exp/rev, accrued exp/rev, depreciation

Question 2

BDA General journal

Answer 2

Insurance expense (positive) is transferred to the prepaid insurance account which results in a decrease. This happens until prepaid insurance runs out.

Question 3

BDA ledger

Answer 3

Amount of money in the prepaid (bda) account on the left, expense on the left. Insurance expense ledger decreases on the left