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MODULE 4 ADJUSTING AND CLOSING ENTRIES ACCRUALSDemonstration Problem 1 Anderson Architecture transactions for the year 2000 for Anderson Architects have already been recorded. This problem shows how
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Adjusting entries are journal entries made at the end of an accounting period to update certain accounts and bring them to their correct balances.
All businesses that use accrual accounting are required to file adjusting entries.
Adjusting entries are typically filled out by accountants or bookkeepers using the trial balance and adjusting journal entries.
The purpose of adjusting entries is to ensure that the financial statements accurately reflect the financial position of the business at the end of the accounting period.
Adjusting entries must include details about revenue recognition, expense recognition, and adjustments to asset and liability accounts.
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