ACCT 3001 CH3

ACCT 3001 CH3 - Chapter 3 lThe Accounting Cycle: 1....

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Unformatted text preview: Chapter 3 lThe Accounting Cycle: 1. Journalize 2. Post To The ledger (T—accouni‘s) 3. Prepare unadjus’red Trial balance 4. Adjusi'ing entries 5. Prepare adjusted Trial balance 6. Prepare financial sTaTemen’rs 7. Closing en’rries 8. Prepare pos’r-closing ’rrial balance Review of Financial Si'a‘remem‘s: Imam Eialemni i‘lieve'nwis {mamas : NI. -- - 'VlélUiClS *— mews 3m”. cl Mama lemmas: $3 0929+ iie+ Imam 3) illi‘nu‘ic-l m, ’i'.:a;i)i;‘;‘lg figlqli‘isfid ) V: W mama, Ll‘fuiLr' H s li-lxi “wail- irgyiz n'ig’l’ b.9514» (Pd 0/“:le Jrle -Purm 9f; diinoUlmCJ-S- (Emilia/nu. 3W: Agseisc LJ‘aJoéi;+;gs + SE (aw/37> . 0min Flow Siaicwami’ - 8W H Review of Account/ring Equa’rion and Debi’rs and Cr'edi’rs: ) kwcs a Lu‘wbHH-res + 3E ’9 \ $23 + CS , id . Haggis -Lfi\mg+”Du\rrd z Lmbflffluzs +CS +— 12W, Wham did 'W ibifigoo. 1 \Nlruml am; m 93m, 43mm? Loans [Inmsbre/ film 35‘1" \__/ In groups, work E3-17, page 118 Review of AdjusTing EnTries: '1 1. Prepaid Expense - Cash paid now for a fuTure expense. WhaT Type of accounT is This? Assel , MW WA 2. Unearned Revenue - Cash received now for a fuTur-e service Thu», will be provided. WhaT Type of accounT is This? mutiny H Mam SW Q 52 Alt“ Reamer: .2 73m . PM” 3. Accrued Revenue - Revenue earned buTl noT yeT received in cash. WhaT Type of accounT is This? file ~ 658% * ’Psaimw Sim 4. Accrued Expense — Expense ThaT has happened buT has noT yeT been paid in cash. WhaT Type of accounT is This? Ll'a‘oilil'g -- ill? * Mme; SW- \/ In groups, work P3-8 parTs a, b, and c, pages 124—125. Also, prepare financial sTaTemenTs. AddiTional adjusTing enTry pracTice: (PKETT EOOOOX «9“le Pioneer signed a 3-monTh, 12% noTe payable in The amounT of $50,000 on OcTober 1. Prepare The adjusTing enTry on-OcTober 31 To record The accrual of inTeresT. 1500 1‘5erer m _ 00 :fiihenfls-l' ’Pag able- '6 —.r-' ...- Review of Closing EnTries: _ “RED )Revenues, expenses, and dividends are “Temporary accounTs" because They are closed aT The end of The year. All oTher accounTs are permanenT accounTs. vafnfi an m game glad ohm meow. STeps in preparing closing enTries: 1. Close revenues To Income Summary. 2. Close expenses To Income Summary. 3. Close Income Summary To RE. 4. Close dividends To RE. Income Summary - a Temporary accounT only used during The closing process. PosT—closing Trial balance - shows all permanenT accounTs. In groups, work P3-8 parT d (page 125) and prepare The posT closing Trial balance. Cash [la/ODD AlC {20.0- lgloolo Rm (The. WOO Allow/Mu lW WW”- J leuo ‘ZPrapw‘d 136-- @900 Land 8720002 &.‘idmgs moon I find 42,401) Afismlfni mama 000 A00 all“? (two some GPQDEMTM. (SW) UNMMCI 'Rignr “Roy. B; 0 Q3. 40 ,0!) Wle l RE “audio (e2,m+ 8r,u4o) To conver’r cash based revenue To accrual based revenue: p 'mid ml. NM. 3 alarmiurllm E34956 >Cash receist from cus’romers (0064‘ Wm WM” Viz-00%) - Beginning A/R if alga 4 + Ending A/R + 2:640 + Beginning unearned revenue / 4/ l l I) — Ending unearned revenue W) = Service revenue on The accrual basis To converT cash paid for opera’ring expenses during the year To operaTing expenses on The accrual basis: Cash paid for opera’ring expenses (Cabin WW Mimi‘s) [00,470 + Beginning prepaid expenses "i [W7 - Ending prepaid expenses 3,25% \ - Beginning 858i?”de [Fiié‘g (mam—s paule (3,436) l + Ending accrued liabilities WW? = Opera’ring expenses on The accrual basis 516% Work E3-18, page 119. 4m:an - basech “re,va Vitamin i. n W #51825? i. n NMIVICOW‘ (5623,1152) ...
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ACCT 3001 CH3 - Chapter 3 lThe Accounting Cycle: 1....

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