Adjusting Entries: Accrued Revenues Video Lessons

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Problem: Matt Meyer opens a hockey rink and offers hockey lessons for kids. When preparing his financial statements for September, he realized he had provided $350 of lessons for which he had not been paid and prepared the necessary adjusting entry. What effect did this entry have on his financial statements? A. Increased revenues and net income, decreased assets and equity B. Increased revenues and net income and assets, decreased equity C. Increased revenues, net income, assets and equity D. Increased expenses and liabilities, decreased net income and equity.

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Matt Meyer opens a hockey rink and offers hockey lessons for kids. When preparing his financial statements for September, he realized he had provided $350 of lessons for which he had not been paid and prepared the necessary adjusting entry. What effect did this entry have on his financial statements?

A. Increased revenues and net income, decreased assets and equity

B. Increased revenues and net income and assets, decreased equity

C. Increased revenues, net income, assets and equity

D. Increased expenses and liabilities, decreased net income and equity.

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