Affect only balance sheet accounts. Adjusting entries: a. B. affects two balance sheet accounts. 15. An adjusting entry always affects at least one balance sheet account and at least one income statement account. c. optional. Under the accrual method of accounting, the accounts such as Unearned Revenues are necessary when a company receives money from a customer in advance of the company earning the money. An adjusting entry a. affects two balance sheet accounts. Each adjusting entry usually affects one income statement account (a revenue or expense account) and one balance sheet account (an asset or liability account). Adjusting entries, also called adjusting journal entries, are journal entries made at the end of a period to correct accounts before the financial statements are prepared. The Balance Sheet, Debits and Credits, and Double-Entry Accounting: Practice Problems . 570 was purchased. D. affects two income statement account … read more You must identify the two or more accounts involved 1.1. Privacy An adjusting entry a. affects two balance sheet accounts. d) affects a balance sheet account and an income statement account. Wild - Chapter 03 #146 Question 24 2 / 2 points Assuming unearned revenues are originally recorded in balance sheet accounts, the adjusting entry to record earning of unearned revenue is: Increase an expense; increase a liability. b) is always a compound entry. Decrease a liability; increase revenue. One of the accounts will be a balance sheet account 1.2. O affects a balance sheet account and an income statement account. C. affects a balance sheet account and an income statement account. D) is always a compound entry. b) is always a compound entry. 12. d) affects a balance sheet account and an income statement account. O is always a compound entry O affects two balance sheet accounts. 17) Adjusting entries are required A. every time financial statements are … c.affects a balance sheet account and an income statement account. This is where the adjusting entry comes in, you want to capture earning that revenue in this time period. Every adjusting entry affects? So the adjusting entry always starts with some piece of missing data on the income statement. Increase an asset; increase revenue. B) Is Always A Compound Entry. C Adjusting entries are: a. the same as correcting entries. B) affects two income statement accounts. C) affects a balance sheet account and an income statement account. c affects a balance sheet account and an income statement account d. is always a compound entry Wallowa Company purchased supplies costing $6,000 and debited Supplies for the full amount. Balance sheet accounts are one of two types of general ledger accounts. b. The other half of the entry is adding it to the balance sheet. Affect only income statement accounts. You must calculate the amounts for the adjusting entries 3. c) affects two income statement accounts. Southern New Hampshire University • ACC 201, City College of San Francisco • ACCOUNTING acct 2, DeVry University, Keller Graduate School of Management, DeVry University, Keller Graduate School of Management • ACCT 504, San Jose State University • ACCOUNTING 121A. c) affects two income statement accounts. Exercises Week 1 ACC 561. Accounts often need to be adjusted because 82. Thus, every adjusting entry affects at least one income statement account and one balance sheet account. Adjusting entries are: Made to balance sheet accounts only Not necessary if the accounting system is operating properly Made whenever management desires to change an account balance Usually required before financial statements are prepared. 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