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

Question

Quizplus · Accepted Answer

Paying for office cleaning services at the end of January does not require an adjusting entry because the expense has already been incurred and recorded in the accounts payable system. The remaining options involve expenses or revenues that need to be adjusted at the end of the period to properly reflect the company's financial position.

Which of the Following Situations Does Not Require Empire Company