1) DISCUSSION U.S. GAAP mandates proper accrual journal entries to comply with the matching principle. Find an article that discusses how a business utilizes accrual journal entries. Then, present a summary of the article or provide a real-life example. Go to at least 2 other colleagues posts and discuss how the accrual journal entries impacted the businesss financials.
2) ASSIGNMENT 1 ACC220 Week 2 Journal Entries
The Adjustment Process
For this weeks assignment, address the following questions. Be sure to complete all steps and sections of the problem and show all your work.
1. If the Supplies account had an ending balance of $1,200 and the actual count for the remaining supplies was $400 at the end of the period, what adjustment would be needed?
2. If the Prepaid Insurance account had a balance of $12,000, representing one years policy premium, which was paid on July 1, what entry would be needed to adjust the Prepaid Insurance account at the end of December, before preparing the financial statements?
3. If adjusting entries include these listed accounts, what other account must be in that entry as well? (A) Depreciation expense; (B) Unearned Service Revenue; (C) Prepaid Insurance; (D) Interest Payable.
3) ASSIGNMENT 2 Reviewing Payroll
Be sure to complete all steps and sections of the problem and show all your work.
1. Reviewing payroll records indicates that employee salaries that are due to be paid on January 3 include $3,575 in wages for the last week of December. There was no previous balance in the Salaries Payable account at that time. Based on the information provided, make the December 31 adjusting journal entry to bring the balances to correct.
2. Supplies were purchased on January 1, to be used throughout the year, in the amount of $8,500. On December 31, a physical count revealed that the remaining supplies totaled $1,200. There was no beginning of the year balance in the Supplies account. Based on the information provided:
3. Create journal entries for the original transaction
4. Create journal entries for the December 31 adjustment needed to bring the balances to correct
5. Show the activity, with ending balance
