2-9 Reversing Journal Entries

Question 1

Reversing Journal Entries

Answer 1

Can be used to simplify certain journal entries for the next accounting period

Question 2

Are reversing entries required?

Answer 2

No, they are optional

Question 3

When are reversing journal entries appropriate?

Answer 3

Adjusting entries that

1. Defer the recognition of revenue or expense items recorded originally as revenue/expense
2. Accrue revenue or expense items during the current period (Ex: Salary Expense)

Question 4

Accounting Worksheet

Answer 4

A multicolumn workspace that provides an organized format for performing several end-of-period accounting cycle steps and for preparing financial statements before posting adjusting journal entries