Adjusting Entries Activity Context Revisit The MBA6014 Cours

Adjusting Entriesactivity Context Revisit The Mba6014 Course Alignment

Revisit the MBA6014 Course Alignment Map to review how all activities assist you in achieving the course competencies and overall program outcomes. This assignment addresses the impact of adjusting entries on financial statements and will help you to demonstrate your understanding of deferred revenue, deferred expense, accrued revenue, and accrued expense, as well as your understanding of the accounting entries that record these items in the accounting system. Complete P4-7 (page 209) and CP4-2 (page 217) from Chapter 4 of your Financial Accounting textbook.

All quantitative assignments must be completed on the Microsoft Excel templates provided. Create one workbook with multiple tabs, copying each problem's template onto a separate tab and completing the work there. Submit this single file in the assignment area. Include your name and the assignment number in the file name; also include your name and the problem number on each tab of the document. All work should be shown. Assignments must not be submitted as a PDF.

Refer to the scoring guide for this assignment to ensure that you meet the grading criteria. Note that one scoring guide is used to evaluate both of the problems in this assessment; each criterion in the scoring guide relates to one or both of the problems here.

Paper For Above instruction

The accurate recording of adjusting entries is essential for ensuring that financial statements reflect the true financial position and performance of a business. Adjusting entries are made at the end of an accounting period to allocate income and expenses correctly, matching revenues earned with expenses incurred in the appropriate period. This process adheres to the matching principle in accounting, which underpins the accrual basis of accounting and ensures that financial reports provide a fair view of a company’s financial health (Kieso, Weygandt, & Warfield, 2019).

Understanding the four primary types of adjusting entries—deferred revenue, deferred expense, accrued revenue, and accrued expense—is fundamental for accounting professionals. Deferred revenue, also known as unearned revenue, arises when a business receives cash before providing the goods or services, requiring a liability adjustment until revenue is earned (Gintzburger & Whittington, 2017). Conversely, deferred expenses, or prepaid expenses, involve payments made in advance for goods or services to be received in the future, necessitating an asset adjustment until they are utilized (Weygandt, Kieso, & Kimmel, 2018).

Accrued revenue occurs when revenue is earned but not yet received or recorded, requiring an asset recognition (such as accounts receivable), while accrued expenses involve incurred costs that have not yet been paid or recorded, necessitating liability recognition (Schroeder, Clark, & Cathey, 2019). Correctly journalizing these entries ensures compliance with GAAP and provides stakeholders with accurate financial information.

The specific exercises, P4-7 and CP4-2, focus on applying conceptual understanding to practical scenarios by preparing adjusting entries based on given financial data. P4-7 primarily involves adjusting entries for accrued revenue and expenses, while CP4-2 addresses deferred revenues and expenses. Using the provided templates helps standardize the presentation, reduces errors, and ensures clarity and professionalism in financial reporting (Brooks, 2018).

It is important to complete these exercises in Excel, following the prescribed templates meticulously. Each problem should be placed in separate tabs within the workbook, with all calculations and journal entries fully shown. Proper filename conventions—including student name, assignment number, and problem identifiers—facilitate assignment tracking and grading efficiency. Submission should be in Excel format, not as a PDF, to enable graders to review formulas and adjustments effectively.

Adhering to the grading criteria outlined in the scoring guide will help maximize your score. This guide emphasizes accuracy of calculations, appropriateness of journal entries, clarity of presentation, and understanding of the underlying concepts. Paying careful attention to these components will demonstrate mastery of adjusting entries and their impact on financial statements, which is crucial for a solid foundation in financial accounting.

References

• Brooks, C. (2018). Financial accounting: A practical approach. Cengage Learning.
• Gintzburger, M., & Whittington, R. (2017). Principles of accounting. McGraw-Hill Education.
• Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2019). Intermediate accounting (16th ed.). Wiley.
• Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2019). Financial accounting theory and analysis: Text and cases. Wiley.
• Weygandt, J. J., Kieso, D. E., & Kimmel, P. D. (2018). Financial accounting (10th ed.). Wiley.