Which of the following situations does not require an adjusting entry at the end of May?
A)At the end of May,Bolton Industries pays the custodian for May office cleaning services.
B)On May 1,Bolton Industries paid rent for six months on its office building.
C)On May 1,Bolton Industries began delivery service to a client who will pay at the end of a three-month period.
D)On May 1,Bolton Industries purchased delivery equipment with an estimated useful life of six years.

Question

Quizplus · Accepted Answer

The payment to the custodian for May office cleaning services has already been made and there is no need for an adjusting entry. Adjusting entries are made to record transactions that have been incurred but not yet recorded in the accounts or transactions that have been recorded but need to be adjusted for accuracy at the end of the accounting period. Option B, C, and D all involve transactions that require adjusting entries.

Which of the Following Situations Does Not Require an Adjusting