chapter2 - Part one Asset Accounts: Cash(its not revenue)...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Part one Asset Accounts: Cash(it’s not revenue) accounts receivable: credit sales or sales on account or on credit note receivable(promissory note) prepaid accounts(prepaid expense) : (1) all expired and used prepaid accounts are recorded as regular expenses. (2) all unexpired and unused prepaid accounts are recorded as assets( reflecting future use in future periods supplies(when they are unused, they are called assets. When they are used up, their costs are reported as expenses) equipment(same as supplies) buildings land patents, copy rights Liability Accounts accounts payable note payable unearned revenue : a liability that is settled in the future when a company delivers its products or services. When customers pay in advance for products or services (before revenue is earned), the revenue recognition principle requires that seller consider this payment unearned revenue. Accrued liability: wage payable, taxes payable, interest payable. Loans Equity Accounts= Common Stock – Dividend + Revenue – Expense Revenue: sales, commissions earned (anything earned), interest revenue Expense: utility bill, legal cost, salary costs Transaction analysis Owner invested cash for money A(+) SE(+) L(NC)
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

chapter2 - Part one Asset Accounts: Cash(its not revenue)...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online