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2 March, 08:06

Certain adjusting entries made at the end of an accounting period are reversed at the beginning of the following period Required: Analyze the following four adjusting entries made on December 31, and determine whether a reversing entry is needed. Date DebitCredit Reversing entry Reversing entry Description necessary not necessary Dec. 31Rent Expense 1,000 Prepaid Rent 1,000 31 Taxes Expense 1,750 Taxes Payable 1,750 31 Deferred Rent Revenue 1,550 Rent Revenue 1,550 31 Salaries Expense 150 Salaries Payable 150

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Answers (2)
  1. 2 March, 08:24
    0
    No reversing entry is needed as they are all posted correctly

    Explanation:

    1. Rent Expense 1,000 Prepaid Rent 1,000

    This entry is correct because it rent had been prepaid, then the entry would have been to debit 'Prepaid Rent'and credit Cash/Bank. However at the end of the period when rent is accrued, you debit 'rent expense' and credit 'prepaid rent'

    2. Taxes Expense 1,750 Taxes Payable 1,750

    This entry is correct because at the end of the period when Tax is accrued, you debit 'Tax expense' and credit 'Tax payable' because tax is always paid much later in a future period not the current period

    3. Deferred Rent Revenue 1,550 Rent Revenue 1,550

    This entry is correct because at the end of the period when rent income is earned, but has been paid for before: you debit 'Deferred Rent Revenue' and credit 'Rent Revenue' because (at least a portion of) the deferred rent revenue is now earned.

    4. Salaries Expense 150 Salaries Payable 150

    This entry is correct because at the end of the period when Salary is accrued, you debit 'Salary expense' and credit 'Salaries payable'
  2. 2 March, 08:31
    0
    Answer:Answer: Dr: Rent expense $1,000, Cr : Prepaid Rent $1,000, Dr:Tax expense $1,750, Cr: Tax payable $1,750, Dr: Deferred Rent Revenue $1,550, Cr: Rent Revenue $1,550, Dr:Salaries expense $150, Cr: Salaries payable $150

    Explanation:

    The journal entry will be

    Account Name. Dr. Cr

    $ $

    Rent expense. 1,000

    Rent prepaid. 1,000

    Account Name. Dr. Cr

    $ $

    Tax expense. 1,750

    Tax payable. 1,750

    Account Name. Dr. Cr

    $ $

    Deferred Rent Revenue. 1,550

    Rent Revenue. 1,550

    Account Name. Dr. Cr

    $ $

    Salaries expense. 150

    Salaries payable. 150
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