121. When examining the work an accountant performs for many organizations, many of the challenges revolve around creating adjusting entries that bring the accounts into an accrual accounting basis....

121. When examining the work an accountant performs for many organizations, many of the challenges revolve around creating adjusting entries that bring the accounts into an accrual accounting basis. Four such adjusting entries may include accounting for accrued revenues (unrecorded revenues), accrued expenses (unrecorded expenses), deferred revenue (previously recorded revenues), and deferred expenses (previously recorded expenses).



Required:



For each type of adjusting entry listed above, discuss an example adjusting entry that a lighting retailer might

122. Assume that a firm uses the accrual basis of accounting. Indicate the amount of expense the firm recognizes during the month of November for each independent transaction.


a.Rent of $3,600 is paid on November 1 for the months November through January.
b.Inventory costing $2,500 is ordered on account. The invoice is received on November 25 and the goods are received on December 5.
c.Insurance premium of $900 is paid for a full year of coverage starting November 1.
d.On December 3, an invoice for November utilities of $325 is received.
e.On November 1, supplies costing $2,200 are purchased. At November 30, $500 of supplies remained on hand.