SumAdjEntries

SumAdjEntries - made to a liability account. A revenue item...

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Summary of Adjusting Entries Deferrals and Accruals Kind of Adjustment Brief Definition Original Entry Deferrals Prepaid  Expense Assumption:   The  original debit is  made to an asset  account.   A prepaid item that  benefits two or more  periods; it is  necessary to  allocate expense to  appropriate periods. Dr. Prepaid _________(asset)      Cr. Cash Adjusting Entry Dr. __________ Expense      Cr. Prepaid____________ Depreciation Systematic  allocation of the  historical cost of  long-lived asset to  the accounting  periods benefited. Original Entry Dr. Equipment (asset)      Cr. Cash or Liability Adjusting Entry Dr. Depreciation Expense      Cr. Accumulated           Depreciation            (contra-asset account)  Unearned  Revenue Assumption:  The  original credit is 
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Unformatted text preview: made to a liability account. A revenue item that is collected in advance of the period(s) earned; it is necessary to allocate the revenue to the appropriate period in which it is earned. Original Entry Dr. Cash Cr. Unearned _____(Liab) Adjusting Entry Dr. Unearned ________(Liab) Cr. _________Revenue Accruals Accrued revenue Revenue is earned in a given period but not yet collected or recorded Original Entry None Adjusting Entry Dr. _______Receivable Cr. _________Revenue Accrued expense Expenses incurred in a given period but Original Entry None Adjusting Entry not yet paid or recorded. Dr. ________Expense Cr. _______Payable (Liab)...
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This note was uploaded on 04/12/2011 for the course ACCT 1310 taught by Professor Vickivorrell during the Spring '07 term at Cuyahoga CC.

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SumAdjEntries - made to a liability account. A revenue item...

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