acc 5010 notes - 9-14-10 ACC 5010 Entertainment Expense...

9-14-10 ACC 5010
Entertainment Expense 2,325
Cash 975
AIP 1,350
Cash 1,7M
Common Stock 17 M
Cash 10.60
Sales revenue 10.00
Sales Tax payable .60
Owner starts company
Cash 10,000
Common Stock 10,000
Freezer 2,000
Cash 2,000
Tools 1,000
Unearned Revenue 1,000
^^^^^Has a friend that owns a hardware store, friend says hey daughter getting married I give tools you
make ice sculpture for wedding
A/R 2,000
Service Revenue 2,000
Different wedding, he gives the customer a tangible good but the good comes from a service rather than a
sale.

He has to pay a local company to truck him over to place
Transportation expense 100
Cash 100
Process from account cycle goes from transaction to posting these things to certain accounts. Each
account has its own record attached to it
Post the transactions to T account.
Next up the trial balance, not a finance statement, not a balance sheet. Balance sheet is part of fianncal
statements, trail balance internal document. Trial balance shows that Debits= Credits, Balance Sheet