Which of the following is not an example of an adjusting entry? A)recording unpaid interest at year end relating to an outstanding loan balance at year end B)recording depreciation on office equipment purchased during the year C)recording the gain on the sale of equipment made during the year D)reducing the prepaid rent account for the portion of rent actually used

Question

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Recording the gain on the sale of equipment made during the year is not an example of an adjusting entry as it would already have been recorded as part of regular accounting entries. Instead, it would be recorded as a separate transaction. A, B, and D are all examples of adjusting entries where accounts are updated to reflect their current balances at the end of the accounting period.

Which of the Following Is not an Example of an Adjusting