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Assume you are the controller for a small family owned manufacturing business. The owner attempted to prepare financial statements but was unable to calculate the numbers correctly. You noticed that the owner did not enter adjusting entries into the journal nor posted them to the company accounting ledger. Explain to the owner at least one example of an adjusting entry. In your discussion, include the journal entry that would complete the adjustment and explain the effects on the balance sheet and income statements if the adjustments do not take place. ?(300-400 word count range).
Adjusting entries are usually made on the last day of an accounting period (year, quarter, month)
so that the financial statements reflect the revenues that have been earned and the expenses that...
Paper#9255664 | Written in 27-Jul-2016Price : $17.85