Chosen by Asker

How many times are you going to ask this question today? If you don't like the answers, then do the research on your own. As I answered before, none of the accounts should have an adjusting entry. Good books are black and white, with every penny accounted for - which equals no adjusting entries. *

by Electric Blue

2 months ago

Asker's Rating: 

I think capital stock.

by Ykazmi- 2 months ago

The only account that is not a Balance Sheet account is wages expense. Which is probably the correct answer.

by Joseph T- 2 months ago

Sung Y, I can see why you asked this question again. It's because you weren't happy with Electric Blue's first answer. Why? Because she obviously doesn't know what she's talking about AND gave you the wrong answer on top of it. Company's make adjusting entries all the time, that's the whole idea behind accrual accounting. The answer to your question is Capital Stock. Here's why: Wage Expense usually requires an adjusting entry to accrue wages incurred for the period, but not yet paid. So that eliminates that answer as a possibility. Accumulated depreciation usually requires an adjusting entry to record the period's depreciation expense. So that eliminates that answer as a possibility. Accounts receivable usually requires an adjusting entry when you have a long-term contract. For example, say you have a six month contract with a customer that will pay you $6,000 at the end of the six month period. Now you need to remember that revenues are recognized when "earned". So after a month of you working, you would make an adjusting entry to accrue $1,000 in revenues. Therefore, your entry would be debit AR for $1,000 and credit Service Revenue for $1,000. With the above being noted, capital stock appears to be the answer. Hope this helps.

by golfersp- 2 months ago