Which of the following does not require an adjusting entry at year-end?
A)Accrued interest on notes payable.
B)Supplies used during the period.
C)Cash invested by stockholders.
D)Accrued wages.
E)Expired portion of prepaid insurance.

Question

Quizplus · Accepted Answer

Cash invested by stockholders does not require an adjusting entry at year-end because it does not affect any accounts that require accrual accounting. It directly increases the cash account and the stockholders' equity accounts.

Which of the Following Does Not Require an Adjusting Entry