Common+problems+seen+on+accounting+cycle+problem - ACCT 207...

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ACCT 207 1. Dating: ending, December 31, 2005. It is unacceptable to say period ending. The reader needs to know period is it a month, quarter or year? B/S should just read the day only like: December 31, 2005 on 12/31/05 as of 12/31/05 or at 12/31/05. Reader then knows it is the running balance since the start of business to that particular date. 2. Go to book to see good format for the various financial statements. 3. Ledgers need to be updated for the new entries made. 4. Dividends are a contra-stockholders' equity account and thus are + - 5. Dividends are subtracted on the St of Re and not again on the B/S. 6. Not all events require a journal entry. Watch dates. Transaction "c" related to 2006. 7. Interest if you have Notes Receivable you have interest revenue. If you have Notes Payable you have interest expense. 8. Accrued means the cash is coming later so if you have a revenue then the debit is to a receivable. If you have an expense then the credit is to a payable. 9.
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Common+problems+seen+on+accounting+cycle+problem - ACCT 207...

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