Acct Final Exam SG 3

Acct Final Exam SG 3 - Accounting 2001 Final Exam Review...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Accounting 2001 Final Exam Review Guide Accounting – Identifies, Records and Communicates economic events to users Cost Principle – dictates that companies record assets at their cost Proprietorship – business owned by one person Assets = Liabilities + Stockholders Equity Accrual basis accounting – Record transactions in the period in which they occur Cash based accounting – Record transactions when you receive the cash Revenue Recognizing principal – companies recognize revenue in the account period when they get it Matching Principle – expenses are matched with revenues Adjusting entries Deferrals – Prepaid expenses – rent or insurance Unearned revenues – rent or magazine subscriptions Accruals – Accrued Revenue – Revenue earned but not yet recorded Accrued Expenses - Expenses incurred but not yet paid Adjusting Entries – Examples Landry has completed 600 of the job for Eric D: Unearned Revenue600 C: Service Revenue 600 Depreciation Entries (Basic) Strait line method = Balance in account –salvage value(months) Closing Entries – Close them to Income Summary Process of closing accounts 1. Revenues D: Revenues C: Income Summary 2. Expenses D: Income Summary C: Expenses 3. Retained Earnings (too close net income to R/E) D: Income Summary C: Retained Earnings 4. Dividends D: Retained Earnings C: Dividends Accounting Cycle 1. Analyze business transactions 2. Journalize the transaction 3. Post to ledger accounts 4. Prepare a trial balance 5. Journalize and post adjusting entries 6. Prepare an adjusted trial balance
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
7. Prepare financial statements: Income Statement, Retained Earnings, Balance sheet
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 5

Acct Final Exam SG 3 - Accounting 2001 Final Exam Review...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online