The income statement and the balance sheet are closely related. Give an example of how adjusting entries \"move\" amounts from the balance sheet to the income statement.
do i need more info or?
Solution
Adjusting entries are usually made on the last day of an accounting period so that the financial statements reflect the revenues that have been earned and the expenses that were incurred during the accounting period.
For example, a customer paid in advance of receiving goods or services. Until the goods or services are delivered, the amount is reported as liability. After goods or services are delivered, an entry is needed to reduce the liability and to report the revenues.
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The income statement and the balance sheet are closely related- Give a.docx
1. The income statement and the balance sheet are closely related. Give an example of how
adjusting entries "move" amounts from the balance sheet to the income statement.
do i need more info or?
Solution
Adjusting entries are usually made on the last day of an accounting period so that the financial
statements reflect the revenues that have been earned and the expenses that were incurred during
the accounting period.
For example, a customer paid in advance of receiving goods or services. Until the goods or
services are delivered, the amount is reported as liability. After goods or services are delivered,
an entry is needed to reduce the liability and to report the revenues.
