Week 6 Lab - Adjusting Entries Acc1045 Part 1 Read/review Power Point and Chapter 3 Adjusting Entries Part 2 Explain the following adjusting entries- please write in your notebook and take picture to upload to Schoology. Accrual Accounting Prepaid Expenses Depreciation Straight line depreciation Formula Part 3 Complete the following exercises. You may use the template for General Journal found in your folder named "Templates" QS 3-1GAAP and adjusting entries LO2 For each of the following, identify the primary GAAP that has been violated and explain why. 1. Delta Company prepared its first set of financial statements for the three years ended July 31, 2017. Page 189 2. Warren Consulting purchased $9,800 of supplies on September 30, 2017, and debited Office Supplies Expense. Warren's year-end is September 30. 3. On May 3, 2017, Nikos Car Wash collected $3,000 in advance from a new limousine company to begin operating June 1, 2017. Nikos credited a revenue account for the $3,000. 4. On November 15, 2017, Scooter Town rented equipment for $1,500. Scooter Town is not recording the transaction until it pays (payment is required 15 days from the rental date). QS 3-2Accrual accounting LO3 Based on the accrual basis of accounting, determine when the following independent companies should recognize revenue.