Review_Lecture_7111AFE - Source documents ry nt ge try en...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Review Lecture Week 12 The Accounting Cycle Source documents 1. Recognise & record transaction 2. General ledgers 3. Unadjusted Trial Balance 4.Adjusted Trial Balance 5. Financial reports Subsidiary ledgers Posting Adjusting Closing entry & Reversing entry Reporting Summarizing Journalising ACCOUNTING FOR SERVICE INDUSTRY RETAIL INDUSTRY Financial Statements Example of a company in the service industry Revenue from insurance services $50,000 Less: Salaries expense 14,275 Supplies expense 250 Rent expense 3,600 Utilities expense 625 Interest expense 600 Depreciation 650 Net profit $30,000 Prensa Insurance Income Statement Year Ended December 31, 2006 Prensa Insurance Equity , January 1, 2006 $100,000 Add: Net profit 30,000 Prensa Insurance Equity , December 31, 2006 $130,000 Prensa Insurance Statement of Changes in Equity Year Ended December 31, 2006 Assets: Cash $189,150 Accounts receivable 5,000 Supplies 100 Prepaid rent 1,000 Office equipment 5,000 Less: Accumulated depreciation 250 4,750 Total assets $200,000 Prensa Insurance Balance Sheet As At December 31, 2006
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon