Accounting Notes- Day 11

Accounting Notes- - entries Reason for adjustment revenues have been earned but not received in cash or recorded Accounts before adjustment assets

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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
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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...
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This note was uploaded on 01/19/2012 for the course ACCT 2000 taught by Professor Holmes during the Fall '08 term at LSU.

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