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Unformatted text preview: K RISTIN C HEN OR&IE 350 P RELIM 1 R EVIEW S HEET A = L + SE SE = CC + RE T Accounts Cash (A) Bank Loan Payable (L) Contributed Capital (SE) Increases Decreases Decreases Increases Decreases Increases expenses always decrease SE & always in left column or debits revenues always in right column or credits Temp SE Accounts affect Retained Earnings do not appear on Balance Sheet 5 Accounts 1. Revenue 2. Expenses 3. Gain 4. Loss 5. Dividends Retained Earnings RE @ Beg. + Net Income Dividends * only place where Dividends appear besides Cash Flow Statement* RE @ End Income Statement Revenue & Gains + Expenses & losses Net Income Cash Flow Statement Cash @ beg. + Cash inflow from operations + Cash inflow from investing +Cash inflow from financing Cash @ End Adjusting Entries Matching principle: helps show revenue & expenses in the proper period Examples: Dr Cr Wages Expense (Temp SE) X Wages Payable (L) X Insurance Expense (Temp SE) X Prepaid Insurance (A) X Interest Receivable X Interest Revenue X Depreciation Expense (Temp SE) X Accumulated Depreciation...
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This note was uploaded on 04/05/2009 for the course ORIE 350 taught by Professor Callister during the Summer '08 term at Cornell University (Engineering School).
- Summer '08