11 - 3,000,000.00 Cash ### Depreciaiton Expense 6,250.00...

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Finanncial Accounting Notes 2/7/11 Cash 100,000.00 Closing entries: Donation Revenue 100,000.00 We will debit every revenue account the total amount that we have  credited it during the year Cash 1,000.00 We will credit every expense account the total amount that we have  Unearned Rent Liability  1,000.00 debited it during the year. Revenue  ### Prepared Expenses (Rent) 1,000.00 Rent Expense 100,000.00 Cash 1,000.00 Payroll Expense ### Insurance Expense 100,000.00 Cash 10,000.00 Lots of others expenses ### Unearned Revenue Liaibility  10,000.00 Retained earnings 800,000.00 On the last day of each month, we will recognize our revenue and expenses that have accrued during the month without events occuring Unearned Rent Liability 1,000.00 Rent Revenue 1,000.00 Rent Exoense 1,000.00 Prepaid Expense (rent) 1,000.00 Uneanred Revenue Liability  10,000.00 Service Revenue  10,000.00 Building (Lewis Hall)
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Unformatted text preview: 3,000,000.00 Cash ### Depreciaiton Expense 6,250.00 Accumulated Depreciation 6,250.00 Payroll Expense 2,000.00 Payroll Liaibilty 2,000.00 We record evetns and accruals (adjusting entries) in the journal. Each time we record and event or an accrual, debits must equal credits. For each account in our accountingn system, we will record the sum of all of the debits and credits in the general ledger Our trial balance has the year-to-date total of the debits and credits for every account in the accounting system At the end of the year, we do "closing entries" to summarize the information for our income statement Closing entries serve two purposes: 1. they reset all of our revenue and expense accounts to zero 2. they transfer our income to retained earnings...
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This note was uploaded on 12/17/2011 for the course ECON 101 taught by Professor Chapman during the Spring '11 term at Arcadia University.

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