ACC 101 Chapter 3 & 4 test notes

ACC 101 Chapter 3 & 4 test notes - *Income...

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FINANCIAL STATEMENTS INCOME STATEMENT STATEMENT OF OWNER'S EQUITY Operating Revenues M.Neal, owner, capital (at beg. of period) + Service Revenue Investments by owner + Operating Expenses Net Income (from Income Statement) + Withdrawals by Owner ( - ) - Other Items Capital (at end of period) total Interest Revenue (transfer total to balance sheet) Interest Expense Net Income --> transfer to statement of owner's equity--> CLOSING ENTRIES BALANCE SHEET Current Assets 1. Close revenues (-R, -OE) temp accts. Cash reset to zero balance by using Accounts Receivable "Income Summary" acct (+OE) Interest Receivable 2. Close expense accts. Prepaid Insurance Income Summary (-OE) Noncurrent Assets Expense accts (-E, +OE) Notes Receivable Assets & Liabilities are "real" accts & are not Equipment closed Accumulated Depreciation Current Liabilities
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Unformatted text preview: *Income Statement accounts are accts that get Accounts Payable closed Interest Payable Wages payable Unearned Revenue Equity *total from statement of owner's equity BACON & EGGS Income Statement Accounts "temp accts" Balance Sheet Accounts "real accts" Fees Earned Accounts Receivable Fees Earned Unearned Revenue Rent Revenue Unearned Rent Depreciation Expense Accumulation Depreciation Supplies Expense Supplies Insurance Expense Prepaid Insurance Rent Expense Prepaid Rent Wage Expense Wages Payable Utilities Expense Accounts Payable Landscaping Expense Accounts Payable Interest Expense Interest Payable Interest Revenue Interest Receivable *Temp accts are accts. That get adjusted to 0 (zero) balance at end of period in closing entries...
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