The question is:
which accounts normally require an adjusting entry:
Choices to choose from were: Salaries payable, Land, Dana Cates Drawing, Accumulated Depreciation, Unearned Rent and Supplies.
The ones that i chose for the question were:
Salaries Payable, Accumulated Depreciation, Unearned Rent and Supplies.. Am I correct?
i think the only thing that gets adjusted is the Accumulated Depreciation but im not 100% sure.
To determine which accounts typically require adjusting entries, we need to understand the concept of adjusting entries and the nature of each account listed.
Adjusting entries are journal entries made at the end of an accounting period to update the accounts to reflect the correct balances and ensure that the financial statements are accurate.
Now let's analyze each account:
1. Salaries Payable: This account represents the amount owed by a company to its employees for work performed but not yet paid. Adjusting entries may be required to record any accrued salaries that have not been paid by the end of the accounting period.
2. Accumulated Depreciation: This account represents the cumulative depreciation expense charged against a company's long-term assets, such as buildings or equipment. Adjusting entries are made to update the depreciation expense based on the asset's useful life and to reflect the current value of the asset.
3. Unearned Rent: This account refers to the amount received in advance from tenants for rental properties. Adjusting entries are necessary to record the portion of unearned rent that has been earned during the accounting period.
4. Supplies: This account represents the cost of office supplies or materials that a company has on hand. Adjusting entries may be required to adjust the supplies account to reflect the actual amount of supplies used or consumed during the period.
5. Land: Land is a long-term asset that is not subject to depreciation, as its value typically does not decrease over time. Therefore, adjusting entries are not typically required for land.
6. Dana Cates Drawing: This account refers to the withdrawals made by an owner from a business for personal use. Adjusting entries are not necessary for this account since it is typically closed out to the owner's equity account at the end of the accounting period.
Based on this analysis, you correctly identified the accounts that typically require adjusting entries: Salaries Payable, Accumulated Depreciation, Unearned Rent, and Supplies. The accounts Land and Dana Cates Drawing do not usually require adjusting entries.