Use the information given above to answer the following questions:
Brownlee Ltd is a newly established retail store selling plumbing hardware. Shown below are ledger accounts in T-account form, with entries made for the first 3 months of business.

-Which transaction is an accrual accounting end-of-period adjustment?
A) (7)
B) (8)
C) (9)
D) (10).

Question

Use the information given above to answer the following questions:
Brownlee Ltd is a newly established retail store selling plumbing hardware. Shown below are ledger accounts in T-account form, with entries made for the first 3 months of business.

-Which transaction is an accrual accounting end-of-period adjustment?
A) (7) 
B) (8) 
C) (9) 
D) (10).

Quizplus · Accepted Answer

Transaction (9) is an accrual accounting end-of-period adjustment because it involves adjusting the prepaid rent account for the rent expense that has been used up during the period. Transactions (7), (8), and (10) are all regular transactions that do not involve end-of-period adjustments.

Use the Information Given Above to Answer the Following Questions