Financial statement adjustments

Financial statement adjustments

SECONDARY 3

Already incurred but not yet paid

​

Adjustment:

+ to expense

Insert expense payable (classified under current liabilities)

​Expense payable

​Prepaid expense

Expense

Not yet incurred but already paid

​

Adjustment:

- from expense

Insert prepaid expense (classified under current assets)​

Open Ended

Additonal information:

There was $100 prepaid advertising expenses.

Show your workings for this adjustment.

Open Ended

Additional information:

There was $80 interest expense payable.

Show your workings for this adjustment.

Open Ended

Additional information:

There was $40 utilities paid in advance.

Show your workings for this adjustment.

Open Ended

Additional information:

There was $70 wages owing.

Show your workings for this adjustment.

Already earned but not yet received

​

Adjustment:

+ to income

Insert income receivables (classified under current assets)

​Income receivables

​Income received in advance

Income

Not yet earned but already received

​

Adjustment:

- from income​

Insert income received in advance (classified under current liabilities)​