Moteki Company accumulates the following adjustment data at December 31.
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I see that you mentioned "adjustment data" for the Moteki Company at December 31. To better understand and analyze this adjustment data, we need to know what specific adjustment data you are referring to. Adjustment data typically refers to the changes made to financial records at the end of an accounting period to ensure that the financial statements accurately represent the company's financial position.
Common types of adjustment data include:
1. Accrued expenses: This adjustment is made to recognize expenses that have been incurred but not yet recorded. For example, if the Moteki Company had incurred utility expenses for the month of December, but the bill has not been received or recorded, an adjustment is made to recognize this expense.
2. Prepaid expenses: This adjustment is made to recognize expenses that have been paid in advance but have not yet been incurred. For example, if the Moteki Company has prepaid rent for the next three months, an adjustment is made to recognize the portion of rent expense that is applicable to the current accounting period.
3. Depreciation: This adjustment is made to allocate the cost of long-term assets over their useful lives. Depreciation expense is recognized as an adjustment to reduce the value of the assets on the balance sheet and record the corresponding expense on the income statement.
4. Accrued revenues: This adjustment is made to recognize revenues that have been earned but not yet recorded. For example, if the Moteki Company has provided services to a customer in December but has not yet invoiced or received payment, an adjustment is made to recognize the revenue.
5. Unearned revenues: This adjustment is made to recognize revenues that have been received in advance but have not yet been earned. For example, if the Moteki Company has received payment from a customer for services that will be provided in January, an adjustment is made to defer the revenue recognition to the appropriate accounting period.
To properly analyze the adjustment data for the Moteki Company at December 31, it is important to review the company's financial records, such as the general ledger, trial balance, and supporting documentation. These records will provide detailed information on the specific adjustments made, along with the necessary calculations and supporting documentation for each adjustment.