{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

KIC000073 - B/S and I/S II Closing entries;o After...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
General Rules for Adjustments )-Adjustments NEVER involve cash s-Adjusunents ALWAYS affect both the balance sheet and the income statement 4 Adjusting Entries 1. Deferred expense Prepaid expense (asset)- Expense + 2. Deferred reven ue Unearned revenue (liability)- Revenue + 4 Adjusting Entries ~ cont. 3. Accrued expense Expense + Payable (liability) + 4. Accrued revenue Receivable (asset) + Revenue + 9
Background image of page 1

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

View Full Document Right Arrow Icon
What is a Contra-Account? ~an account that is an offset to, or deduction from, the primary acct. Book Value (Net Book Value, Carrying Value): the difference between an asset's acquisition cost and its contra-account Example: depreciation 10 Preparation of Financial Statements )i>Afteradjustments have been prepared and recorded, 'we prepare: »Income Statement s-Starement of retained earnings ~ Balance sheet »Statement of cash flows (uses
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: B/S and I/S) II Closing entries };o After statements are prepared, close all revenue and expense accounts, as well as dividends into retained earnings > Do this so you can start them over fOT the next year since income statement is for a period of time » Balance sheets accounts are never closed » Income statement accounts are called temporary, Balance sheet acct are called permanent. 12 Ch"p_. ClLop.4---------• • • The Complete Accounting Cycle Analyze transactions ,. Prepare and pestjournal entries ,. Unadjusted trial balance ,. Prepare and post adjusting entries ,. Adjusted trial balance ,. Prepare financial statements ,. . Prepare and post closing entries ,. Post-closing trial balance 13...
View Full Document

{[ snackBarMessage ]}

Page1 / 3

KIC000073 - B/S and I/S II Closing entries;o After...

This preview shows document pages 1 - 3. Sign up to view the full document.

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