Chapter 3 (Accounting Cycle Steps 5, 6, & 7) ts of BRAP based on the following ACCOUNTING CYCLE STEPS: Adjust the appropriate accoun information. This step involves journalizing the adjusting them to the general ledg 3. (Note: Add these Chapter 2 section of this packet.) entries in the general journal and posting er, using the cross-reference procedure described in accounting cycle step transactions to the general journal and general ledger that you began in the One month of expired Accrue interest on the $7,00,6% loan issued on August 1 even though payment on the principal and interest will not nearest dollar,if necessary.) 220 September 30 the general liability insurance coverage that began on September . has now September 30 I the note matures in two years. (Round to the September 30 Matt determined that $182 of the supplies purchased on September 7 remained unu September 30 You consult with a fellow student who has already completed ACTG 2110, and he helps you calculate depreciation as follows: Equipment- $32; Sign-$13, and Activity Courses $94 (Note: use separate Accumulated Depreciation accounts for each asset, but report the total amount of Depreciation Expense in a single account.) September 30 Accrue wages of $120. The employees earned these wages in September, but will not be paid until October While there are no source documents to prompt us to record adjusting entries, adjusting entries are an important element of matching revenues and expenses to provide GAAP-compliant financial statements. Each adjusting entry affects an income statement account (revenue or expense) and a balance sheet account (asset or liability), so omitting an adjusting entry or making an error in the amount of the adjusting entry makes the income statement, the statement of owner's equity, and the balance sheet incorrect. Some helpful hints to keep in mind as you write adjusting entries: Helpful Hints As previously noted, each adjusting entry affects an income statement account and a balance sheet account. No adjusting entry affects the Cash account