1. Whiteboard Review: Adjustments

2. when is it used to generate revenuesQ1
When do we transfer an amount from an asset account to a related expense account?
when is it used to generate revenues

3. Q2 When does Unearned Revenue become Revenue?
When the service is provided

4. Q3
List the debit and credit accounts required for the following scenarios
H. Clinton provides legal advice in the amount of $4,000 to be paid in 30 days
A/R 4,000
Revenue 4,000

5. Q4
List the debit and credit accounts required for the following scenarios
H. Clinton receives $440,000 to provide legal advice for a client over the course of the coming year
Cash 440,000
Unearned Revenue 440,000
Half way through the year you want to bring the revenue account up to its accurate balance
Unearned Revenue 220,000
Revenue 220,000

6. Q5
In general, with all other adjusting entries what happens to the Assets & Expense Accounts? Dr or Cr?
_______ Expense Dr
Assets Cr

7. Q6
List the debit and credit accounts required for the following scenarios
The Supplies account on the trial balance is $1,250. The inventory count indicates $450 currently on hand. Bring the account up to its correct balance
Supplies Expense 800
Supplies

8. Q7
List the debit and credit accounts required for the following scenarios
One-year insurance policy was purchased on November 30th for $3,600.
Prepaid Insurance 3,600
Cash 3,600
On December 31st bring the prepaid insurance account up to its accurate balance
Insurance Expense 300
Prepaid Insurance 300

9. Q8

10. Q9
List the debit and credit accounts required for the following scenarios
A truck is purchased on Jan 1st, 2015 for $40,000. You expect it to have a $5,000 selling price after 7 years. What is the entry on Jan 1st?
Truck 40,000
Cash 40,000
What entry is needed at the end of 2015 to bring all affected accounts to their accurate levels? Assume Straight-Line.
Depreciation Expense 5,000
Accumulated Dep’n – Truck 5,000

11. Q10
List the debit and credit accounts required for the following scenarios
A building is purchased on March 1st, 2015 for $400,000. What is the entry on Mar 1st?
Building 400,000
Cash 400,000
What entry is needed at the end of 2015 to bring all affected accounts to their accurate levels? Assume Declining Balance Method at 5%. Half-year rule applies.
Depreciation Expense 10,000
Accum. Dep’n – Building 10,000