You are the bookkeeper for a small but thriving business. You have asked the owner for the

Question:

You are the bookkeeper for a small but thriving business. You have asked the owner for the information you need to make adjusting entries for depreciation, supplies, insurance, and wages. He says that he’s really busy and that what you’ve done so far is “close enough.’’ Explain the need for adjusting entries and their effect on the owner’s and the “bottom line’’ on the income statement.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...