accifinal - LEASE capital lease pay 100/YEAR . PV of lease...

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

View Full Document Right Arrow Icon
CLOSING : R = debiting them.-> E = crediting . -> difference i.i R&E credited to re-ear -> Close : Rev. =CGS+ expense + Re earn. REVENUE Earn but not received: Rent AR - Rent Re Thieu but not pay: ( Property Tax Ex = Property Tax P ) adjust pre pay: ( Rent Ex = Prepaid Rent) Received not work: ( Unearned Rent = Rent Re) SALES DISCOUNT : :Cash+ discount – AR SALE RETURNS AND ALLOWACES allowance = C + AR BAD DEBT Direct write-off account deem uncollectible : Bad debt ex – AR Allowance -> sales are made : b ex – allowance for bd ->acc deem uncollectible : allowance for bd – AR (writr off bd) -> S O pay after acc is write off : AR – Allowance for BD => Cash –AR WARRANTY COST -> * estimate warranty Ex : Warranty Ex– estimate warranty liability ->repair are made : Estimate warranty liability – wage payable + supply 8 PAY ROLL -> eployes’ salary (Salaries Expense = FICA T/ P ,Employee +Federal Withholding T/P .+ State Withholding T/P + Salaries P . . -> liabilities OF employees’ salary. (+Payroll Tax Ex =FICA T/ P, Employer + Fe Unemployment T/P + State Unemployment T/P) . SICK DAY -> recognize sick pay ( Salaries Ex - Sick Days P) -> payment of sick day & taxes. (Sick Days P - T/P + C ) ->bonus earned by employees (Salaries Ex – T/P + Bonus P . ) TAX -> Sale TAX , including 5% .( Cash – Sale Re + Sales T/P) Property tax : -> property tax Ex = prepaid property taxes ( Property tax ex – Prepaid property taxes) Income Tax : (Income Tax Ex- Income T/P) LEASE capital lease pay 100/YEAR . PV of lease payments at 10% discount rate = 851 ->lease ..(lease property 851- lease liability 851) -> annual payment (lease liability 14.9+ interest ex 85,1 – cash 100) Operating lease ->
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

accifinal - LEASE capital lease pay 100/YEAR . PV of lease...

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