LET’S CHECK 

Activity 12. In this activity let us check your understanding on the

basic adjusting entries. This knowledge is crucial for the next level,
your performance in the next level shall depend on your competence
of this level. A perfect score is needed to pass this level. On the space
provided write the correct type of adjustment that is describe for each
item. You may answer the type of adjustment more than once.

1.      Deferrals under Pre-collection of Income, income not yet earned;

but collected in advance.

2.      Adjusting on Inventories, Unused supplies; to be used in the next

accounting period.

3.      Deferrals under Pre-collection of Income, rent Income collected;

but not earned yet.

4.      Accruals under Accrued Income, rent Income not yet collected;

but already earned.

5.      Accruals under Accrued Expenses, an expense incurred; but not

yet paid or recorded.

6.      Accruals under Accrued Income, Income earned; but not yet

collected.

7.      Accruals under Prepayment of Expenses, an expense not yet

incurred; but already paid in advance.

8.     Provision for Estimated Uncollectible Accounts (Bad Debts),

salaries incurred; but not yet paid.

9.     Provision for Depreciation of Property and Equipment or Fixed

Asset, expired cost of an asset allocated in one accounting period.
10.   Provision for Estimated Uncollectible Accounts (Bad Debts),
practice in accounting to recognize those receivables which is
estimated to be uncollectible.

11 to 15 identify the term being describe.

11.   Accrual Accounting, an accounting method in which revenues are

reported in the period in which they are earned, and expenses are
reported in the period in which they are incurred.

12.   Adjusting Journal Entries, refers to entries required at the end of

the period to bring the accounts up to date to ensure proper matching
of income and expenses.

13.   Carrying Value or Net Book Value, the difference between the cost
and accumulated depreciation account of the related property and
equipment account.

14.   Estimated Realizable Value, the difference between Accounts

receivable and allowance for doubtful account is called.

15.   ____Ledger___, it is used to classify and summarize

transactions and to prepare data for financial statements. This is
where the increase and decrease of an account is presented.