Chapter 3 33 lo 6 lo prepare adjusting entries for

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ” Revenues earned but not yet received in cash or recorded. Adjusting entry results in: Revenue Recorded BEFORE Cash Receipt Accrued revenues often occur in regard to: interest rent services performed Chapter 3-31 LO 6 LO Prepare adjusting entries for accruals. Prepare Adjusting Entries for “Accrued Revenues” Adjusting Entries for “Accrued Revenues” Accrued Revenues An adjusting entry serves two purposes: (1) It shows the receivable that exists, and (2) It records the revenues earned. Chapter 3-32 LO 6 LO Prepare adjusting entries for accruals. Prepare Adjusting Entries for “Accrued Revenues” Adjusting Entries for “Accrued Revenues” Illustration 3-13 Adjusting entries for accrued revenues Increases (debits) an asset account and Increases (credits) a revenue account. Chapter 3-33 LO 6 LO Prepare adjusting entries for accruals. Prepare Adjusting Entries for “Accrued Revenues” Adjusting Entries for “Accrued Revenues” Example: In October Pioneer Advertising earned $200 for advertising October Pioneer Advertising earned $200 for advertising service...
View Full Document

This note was uploaded on 01/14/2012 for the course ACCOUNT 102 taught by Professor Adams during the Spring '11 term at Bradford School of Business.

Ask a homework question - tutors are online