Ch3 Notes student version - Ch 3 Notes The Adjusting Process Accounting Period Concept Accrual Accounting Under accrual basis of accounting some

Ch3 Notes student version - Ch 3 Notes The Adjusting...

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Ch. 3 Notes – The Adjusting Process Accounting Period Concept Accrual Accounting Under accrual basis of accounting, some accounts need updating at the end of the accounting period for some of the following reasons: 1. 2. 3. Revenue Recognition Matching concept or principle Cash basis of accounting Adjusting entries Accounts requiring adjustments 1. Prepaid expenses a. Transaction: Cash is paid in advance for an expense i. Original Journal entry and accounting equation impact ii. Adjusting Journal entry to update prepaid expenses at the end of the period
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2. Unearned Revenues a. Transaction: Cash is received for unearned revenue i. Original Journal entry and accounting equation impact
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  • Fall '12
  • Griffin
  • Generally Accepted Accounting Principles, adjusting journal entry, Original Journal, ii. Adjusting Journal

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