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    Chapter 7

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    Celestial Nicole Vergaño
    The document discusses adjusting entries and depreciation. Adjusting entries are made by auditors, not bookkeepers, to avoid over or under reporting financial information. Accrued expenses and income are accounted for through adjusting entries. Depreciation accounts for wear and tear of assets using methods like straight line. Land is the only asset that does not depreciate. Depreciation debits accumulated depreciation and considers salvage value, as assets are typically sold before fully depreciating.

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    Chapter 7

    Uploaded by

    Celestial Nicole Vergaño
    20 views1 page
    The document discusses adjusting entries and depreciation. Adjusting entries are made by auditors, not bookkeepers, to avoid over or under reporting financial information. Accrued expenses and income are accounted for through adjusting entries. Depreciation accounts for wear and tear of assets using methods like straight line. Land is the only asset that does not depreciate. Depreciation debits accumulated depreciation and considers salvage value, as assets are typically sold before fully depreciating.

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    Original Title

    CHAPTER 7

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    The document discusses adjusting entries and depreciation. Adjusting entries are made by auditors, not bookkeepers, to avoid over or under reporting financial information. Accrued expenses and income are accounted for through adjusting entries. Depreciation accounts for wear and tear of assets using methods like straight line. Land is the only asset that does not depreciate. Depreciation debits accumulated depreciation and considers salvage value, as assets are typically sold before fully depreciating.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    20 views1 page

    Chapter 7

    Uploaded by

    Celestial Nicole Vergaño
    The document discusses adjusting entries and depreciation. Adjusting entries are made by auditors, not bookkeepers, to avoid over or under reporting financial information. Accrued expenses and income are accounted for through adjusting entries. Depreciation accounts for wear and tear of assets using methods like straight line. Land is the only asset that does not depreciate. Depreciation debits accumulated depreciation and considers salvage value, as assets are typically sold before fully depreciating.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 1

    CHAPTER 7

    Nominal accounts are the one that is being


    closed

    Purpose of adjusting entry

    To avoid over or under statement of accounts in


    the financial position and income statement

    Auditors make the adjusting entry NOT THE


    bookkeeper

    It happens because it involves 2

    ADJUST ENTRIES

    Accrued expense and income are partner

    Dial 250 for example one your thank you I did


    this though so after 9 so spike

    Example: rental between the lessee and lessor

    Keywoard: certain

    Allowance method: estimate / certain p

    Land is the only one that does not depreciation

    Depreciation is wear & tear

    Straight line method

    If depreciation we use

    Debit accumulated depreciation-

    Hindi pinapaabot na mag fully depreciated,


    since most of the time binebenta na to convert
    it to cash

    Scrap or salvage value- estimated

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