{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Accounting Notes- Day 11

Accounting Notes- Day 11 - entries Reason for adjustment...

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

View Full Document Right Arrow Icon
ACCOUNTING 2000 9/19 Depreciation - long, useful life -cost allocation not valuation Accumulated depreciation- contra asset account, not a liability account Unearned revenue -receipt of cash that is recorded as a liability because the revenue has not been earned *cash receipt before revenue recorded *adjusting entry to record the revenue that has been earned and to show liability that remains -adjusting entry results in a decrease in liability, increase in revenue Adjusting entries for accruals -made to record -revenues earned -expenses incurred in the current accounting period that have not been recognized through daily
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: entries Reason for adjustment: revenues have been earned but not received in cash or recorded Accounts before adjustment: assets and revenues understated DR assets CR revenues Adjusting entries for accrued expenses:-expenses incurred but not yet paid in cash or recorded-expense recorded first 1. Records obligations 2. Recognizes recorded first P X R X T Summary of accrued expenses:-expenses have been incurred but not yet paid in cash or recorded-expenses and liabilities understated CLICKER: if an accrued expense is not recorded: Expenses will be understated...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern