1. Explain the reasons for preparing adjusting entries. 2. Identify steps in the

Question

1. Explain the reasons for preparing adjusting entries. 2. Identify steps in the accounting cycle. 3. An annual report Kobe Steel, Ltd., one of the world's largest producers of iron and steel showed Plant and equipment at cost $2,626 Accumulated depreciation 1,618 1. Open T -accounts for (a) Plant and Equipment, (b) Accumulated Depreciation, and (c) Depreciation Expense. Enter these amounts therein. Assume that during the ensuing year Kobe Steel purchased additional plant and equipment for cash of S 63 billion and incurred depreciation expense of 'S 107 billion. Prepare the journal 2. entries, and post to the T -accounts Show how Kobe Steel would present its plant and equipment accounts in its balance sheet after the journal entries in requirement 2 4. Demonstrate accounting principles based on international standard 5. . Identify the qualitative characteristics of accounting information 6. Explain how to report items in the income statement.

Explanation / Answer

Only four parts allowed to be ansewered in one go. Please post remianing in seperate question

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. 1. Adjusting entries are usually made at the end of the year mostly because of the following reasons: - To record the revenue earned which is not yet recorded - To record the expense incurred which is not yet recorded - To ensure amount pre-paid is correctly appearing as expense 2. Steps in Accounting Cycle: -Transactions -Journal Entries - Ledger Posting -Trial Balance -Worksheet -Adjusting Journal Entries -Financial Statements -Closing the Books 3. Plant and Equipment Debit Credit Beg Balance 2626 Pur 63 Ending Balance 2689 Accumulated Dep Debit Credit Beg Balance 1618 During the year 107 Ending Balance 1725 Depreciation Expense Debit Credit During the year 107 Journal Entries: Account Debit Credit Plant and Equipment 63 Cash 63 Depreciation Expense 107 Accumulated Depreciation 107 Balance Sheet Non Current Assets: Plant and Equipment 2689 Less: Accumulated Depreciation -1725 964

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