adjusting entries are made to ensure that

C. statement of financial position and income statement accounts have correct balances at the end of an accounting period. D. c. balance sheet and income statement accounts have correct balances at the end of an accounting period. c. balance sheet and income statement accounts have correct balances at … Note that the ending balance in the asset Prepaid Insurance is now $600—the correct amount of insurance that has been paid in advance. “Adjusting entries are needed to ensure that the revenue recognition and matching principles... 3 Pages (750 words) Assignment. b. revenues are recorded in the period in which the performance obligation is satisfied. Accrued expenses require adjusting entries. These are necessary entries to present a true and fair view of financial information. The adjustments made in journal entries are carried over to the general ledger which flows through to the financial statements. Adjusting entries are usually made at the end of an accounting period. O all of these answer choices are correct. d. all of the above. c. balance sheet and income statement accounts have correct balances at the end of an accounting period. (c) balance sheet and income statement accounts have correct balances at the end of an accounting period. This is to ensure that revenues and expenses are recognized in the accounts in the month to which they relate. Additional accounts are: Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense. They can however be made at the end of a quarter, a month or even at the end of a day depending on the accounting requirement and the nature of business carried on by the company. The matching principle that is applied in accrual accounting requires that adjusting entries are made to the accounts to ensure that all the revenue earned in an accounting period together with all the expenses incurred in earning that revenue, are recorded and reported in the same accounting period. Before financial statements are ready, extra journal entries, referred to as adjusting entries, are made to ensure that the company’s monetary data adhere to the revenue recognition and matching principles. (b) revenues are recorded in the period in which services are provided. O revenues are recorded in the period in which the performance obligation is satisfied. Adjusting entries are made to ensure that a expenses are recognized in the from ACCT 201 at Palomar College (b) revenues are recorded in the period in which ser- vices are performed. This is the fourth step in the accounting cycle. In this case someone is already performing a service for you but you have not paid them or recorded any journal entry yet. Chapter 3-14 SO 3 Explain the reasons for adjusting entries. b. revenues are recorded in the period in which they are earned. Adjusting entries must involve two or more accounts and one of those accounts will be a balance sheet account and the other account will be an income statement account. Adjusting entries are made to ensure that: a. expense are recognized in the period in which they are incurred. It is prepared to record unrecognized income or expenses during that particular period. Adjusting entries are made to ensure that income and expenditure is allocated to the correct accounting period, this means that the accounting records are completed on an accruals basis and are in compliance with the matching principle. 3-12 LO 1 The Need for Adjusting Entries Question Adjusting entries are made to ensure that: a. expenses are recognized in the period in which they are incurred. Entries for the adjustments: 1 Payable, and Supplies Expense all the entries and adjustments neccessary have made. O expenses are recognized in the period in which they are earned a service for you but you have paid. 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