Sep 27, 2017 term paper 2

ADJUSTING ENTRIES ARE REQUIRED AT THE END OF THE PERIOD TO ENSURE THAT ACCRUAL ACCOUNTING…

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Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. The rent is prepaid for three months at $1,200 per month. Develop the adjusting entry at the end of the first month that rent should be applied. (1) Name the accounts impacted and how to use the format account name/debit or credit/dollar amount (10 points), and (2) explain how the Accounting Equation is impacted. (10 points) (Points : 20)


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