Question

A select list of transactions for Goals​ follows:

For each​ transaction, identify what type of adjusting entry would be needed. Select from the following four types of adjusting​ entries: deferred​ expense, deferred​ revenue, accrued​ expense, and accrued revenue.
Apr. 1 Paid six months of rent, $4,800.
10 Received $1,200 from customer for six month service contract that began April 1.
Apr. 15 Purchased a computer for $1,000.
Apr. 18 Purchased $300 of office supplies on account.
Apr. 30 Work performed but not yet billed to customer, $500
Apr. 30 Employees earned $600 in salaries that will be paid May 2.

Answer 1

Goals

Identification of Needed Adjusting Entry:

Transaction Adjusting Entry Type

Apr. 1 Paid six months of rent, $4,800. Deferred expense

Apr. 10 Received $1,200 from customer for Deferred revenue

six month service contract that began April 1.

Apr. 15 Purchased a computer for $1,000. Deferred expense

Apr. 18 Purchased $300 of office

supplies on account. Accrued expense

Apr. 30 Work performed but not yet

billed to customer, $500 Accrued revenue

Apr. 30 Employees earned $600 in Accrued expense

salaries that will be paid May 2.

Step-by-step explanation:

Four types of adjusting​ entries:

Goal's deferred​ expense refers to an expense that Goal will incur in future periods but already paid for.

Goal's deferred​ revenue includes its revenue received in advance of service.

Goal's accrued​ expense refers to an expense that has been incurred but not yet paid for.

Goal's accrued revenue includes revenue that has been earned but not yet received.