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Unformatted text preview: income statement • plus increases inventory • plus decreases in A/P • minus decreases in inventory • minus increases in A/P Revenue: Service revenue Record when earned and collectible INFLOW Record when cash received, even if not earned, i.e., services for cash, collections of cash for unearned service revenue, collections of accounts receivable. INFLOW Net income (which includes service revenue) • plus increases in unearned revenue • minus decreases in unearned revenue • minus increases in accounts receivable • plus decreases in accounts receivable Expenses: Wages payable Record when work is completed. OUTFLOW Record when cash is paid to employees, i.e, work for cash or decrease in wages payable. OUTFLOW Net income (from which wage expense is already deducted) • plus decreases in wages payable • minus decreases in wages payable...
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This note was uploaded on 11/13/2010 for the course EMS 432 taught by Professor Johnson during the Spring '10 term at NMT.
- Spring '10