Concept explainers
(a)
An adjusting entry is prepared when the
Income statement:
An income statement is one of the financial statements which shows the revenues, and expenses of the company. The income statement is prepared to ascertain the net income/loss of the company, by deducting the expenses from the revenues.
Statement of retained earnings:
This is an equity statement which shows the changes in the
Classified balance sheet:
This is the financial statement of a company which shows the grouping of similar assets and liabilities under subheadings.
To journalize: The adjusting entries of Company W for the quarter ended September 30.
(b)
To prepare: The income statement for the quarter ended September.
(c)
To identify: The accounts that should be closed on September 30.
(d)
To identify: The number of months outstanding.
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Financial Accounting
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