For each of the events listed below, indicate whether the event represents a transactional entry, an adjusting entry, or no entry in the accounting system.
Assume the accounting system is designed to collect information on an accrual basis.
a. Depreciation of equipment.
b. Collection of accounts receivable from a customer.
c. A customer uses a gift card to purchase merchandise at a store.
d. Recognition of revenue for work done in the current period but paid for in the previous period.
e. Hiring of a new vice-president of finance.
f. Purchase of inventory on credit from a supplier.
g. Earning of interest on an investment. The interest won’t be paid until next year.
h. A customer pays currently for work to be done next year.
i. Sale of land to a buyer in exchange for a promise to pay $1,000,000 in cash in two years.
j. Payment of a dividend to shareholders.
k. Expensing the cost of an insurance policy that was paid for last year.