Concept explainers
(a)
Accounting rules for journal entries:
- a) To record an increase in account balance: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.
- b) To record a decrease in account balance: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.
Adjusted
Income Statement: The income statement is that financial statement which shows the net income (or loss) of the Company. In the income statement, to calculate the net income, all expenses incurred by the Company are deducted from the total income of the Company.
To journalize: Adjusting entries of S Motel on May 31, 2019
(b)
To post: The Adjusting entries into ledger accounts for S Motel on May 31, 2019.
(c)
To prepare: Adjusted trial balance of S Motel on May 31, 2019
(d)
To prepare: Income statement, Retained earnings statement, and
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