CH 4 - asset it represents o Shown under assets but is...

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Chapter 4 Notes (Adjusting Entries) Revenues: Cash received at the same time (Dr cash, Cr revenue) Cash received before the act was performed (Dr cash, CR unearned revenue) Postponing recording of revenues Have to make a deferral adjustment Cash received after the act was performed (Dr accounts receivable, Cr revenue). Postponing recording of cash received Have to make an accrual adjustment Expenses: Cash paid in same period (Dr expense, Cr cash) Cash is paid before the expenses incurred (Dr prepaid account [A], Cr cash) Postpone recording an expense Have to make a deferral adjustment Cash paid after expenses were incurred (Dr expense, Cr accounts payable). Postpone recording cash payment Must make an accrual adjustment Deferral Adjustments: Make an adjustment by treating the cost of the asset as an expense Debiting certain expenses and crediting some assets Accumulated Depreciation – Contra Asset – has properties opposite of the
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Unformatted text preview: asset it represents. o Shown under assets but is subtracted from the assets TEST REVIEW: Ch 1 Separate entity – A = L + SE Page 18 relevance, accounting rules (who sets them up (Generally accepted accounting Principles). Definition for income statement, Statement of RE, and Balance Sheet Know how to record financial statements Ch 2/3 Analyze the given events Journal Entries T-Accounts (not prepare but where do you put Dr and Cr) DEAD rule “Matching Principle” Page 93 “Time Period Assumption” life of company can be divided into shorter periods Ch 4 Adjusting entries Payable is more likely to have an adjusting entry Cash is least likely to be seen in the Adjusting entries Closing journal entries (Revenues, Dividends, Expenses) Adjusting entry for depreciation (Only contra asset). Chapter 4 Notes (Adjusting Entries)...
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