Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 4 - Accrual Accounting Concepts - Questions - Page 201: 21

Answer

(a) An adjusting entry affect to one balance sheet and/ or one income statement. Salaries Expenses is debited.

Work Step by Step

This is because the adjusting entry is made to arrive at the correct income of that particular year. Adjusting entries are required every time a company prepares financial statements. Thus every adjusting entry will include one income statement account and one balance sheet account.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.