1. Compare and contrast the reporting of financial information based on Fiscal and Calendar years.

1. In regards to the periodic reporting of financial information, describe interim periods.

1. Describe the concept of accrual accounting.

1. Describe the purpose of adjusting entries.

1. Describe the guidelines supporting adjusting entries.
   1. Compare and contrast the reporting of financial information based on Fiscal and Calendar years.

1. Is the Cash account used to record an adjusting entry?

1. What are the two main types of adjusting entries?

1. What is a contra account?

1. What does the balance in an unearned revenue account represent?

1. What are accrued revenues? What are accrued expenses?

1. If an adjustment includes a credit entry to a wages payable account, which type of adjustment is it?

1. If an adjustment includes an entry to Accumulated Depreciation, which type of adjustment is it?

1. Is rent collected in advance an example of a deferred revenue? Why or why not?

1. Is rent paid in advance an example of a deferred expense? Why or why not?

1. Are salaries owed but not yet paid an example of an accrued expense? Why or why not?

1. Describe the adjusting entry required to record depreciation expense during the accounting period.

1. Consider the following transaction: Revenue was collected before being earned; a portion of the revenue has now been earned.

Would this transaction require a debit or credit entry to the Unearned Revenue account? Explain.

1. What critical purpose does the Adjusted Trial Balance serve?

1. Reviewing the insurance policies revealed that a single policy was purchased on August 01, for one years coverage, in the amount of $6000. There was no previous balance in the Pre-Paid Insurance account at the time. Describe the adjusting entry required on December 31 to adjust the account balances.

1. On July 01, a client paid an advance payment (retainer) of $5,000 to cover future legal services. During the accounting period, the company completed $3,500 of the agreed-on services for the client. There was no beginning balance in the Unearned Revenue account for the period. Based on the information provided, describe the adjusting entry required on December 31 to adjust the account balances.

1. Reviewing payroll records revealed that employee salaries that are due to be paid on January 3 include $3,575 in wages for the last week of December. There was no previous balance in the Salaries Payable account at that time. Based on the information provided, describe the adjusting entry required on December 31 to adjust the account balances.

1. Supplies were purchased on January 01, to be used throughout the year, in the amount of $8,500. On December 31, a physical count revealed that the remaining supplies totaled $1,200. There was no beginning of the year balance in the Supplies account. Based on the information provided, describe the adjusting entry required on December 31 to adjust the account balances.