intermediateaccountingareviewoftheaccountingcycle(编辑修改稿)

intermediateaccountingareviewoftheaccountingcycle(编辑修改稿)内容摘要：

xpenses that have been recorded but not yet incurred. 4. Unearned revenues— Revenues that have been recorded but not yet earned. 5. Transactions involving estimates also require analysis. Areas Most Commonly Requiring Analysis 228 1. Identify the original entries that were made, if any.  Original entries are only made for unearned revenues and prepaid expenses. 2. Determine what the correct balances should be at this point in time. 3. Make the adjustments needed to bring the balances to the desired amounts. 3Step Process for Adjusting Entries 229 Rosi, Inc. 230 If revenue is earned but not yet collected in cash, a receivable exists. The illustrative entry recognizing a receivable for Rosi, Inc., is as follows: Unrecorded Assets 231 Liabilities can be created by expenses being incurred prior to being paid or recorded. Rosi, Inc., had unrecorded liabilities at the end of the accounting period. Unrecorded Liabilities Accrued Salaries 232 Unrecorded Liabilities Accrued Interest Liabilities can be created by expenses being incurred prior to being paid or recorded. Rosi, Inc., had unrecorded liabilities at the end of the accounting period. 233 Unrecorded Liabilities Accrued Taxes Liabilities can be created by expenses being incurred prior to being paid or recorded. Rosi, Inc., had unrecorded liabilities at the end of the accounting period. 234 Prepaid Expenses Payments that a pany makes in advance for items normally charged to expense are known as prepaid expenses. The method of adjusting for prepaid expenses depends on how the expenditure was originally entered in the accounts. 235 Original Debit to an Asset Account The expired portion of Rosi’s prepaid insurance is $4,200. The following adjusting entry is required: (continues) 236 Original Debit to an Asset Account (concl.) The following Taccounts illustrate how this adjusting entry, when posted, would affect the accounts. 237 Original Debit to an Expense Account The expense account shows $8,000, but $3,800 is applicable to future periods. The following adjusting entry is required: (continues) 238 Original Debit to an Expense Account The following Taccounts illustrate the effect that this adjusting entry would have on the relevant accounts: Note that regardless of which method is used, the ending balance in each account is the same. 239 Original Credit to a Revenue Account If the revenue account was credited when cash was received, the revenue account remains with a credit balance, representing the earnings applicable to the current period. For Rosi, Inc., the unearned revenue at the end of 2020 is $475 and is recorded as shown next. (continues) 240 Ori。