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Adjusting Entries: Reference Book: Weygandt Kimmel Keiso 9 Edition
Adjusting Entries: Reference Book: Weygandt Kimmel Keiso 9 Edition
Adjusting Entries
Reference Book:
Weygandt Kimmel Keiso
9th edition
Adjusting the Accounts
Causes for adjustments :
Fiscal and calendar year.
Accrual vs cash basis of accounting.
Recognizing revenues and expenses.
Time period assumptions.
Causes for Adjustments
• Time period assumption:
Prepayments Accurals
For Example, X advertising agency earned $200 for the service that have
not been recorded. The adjusting entry would be: