Review for AC202

For monday employees have earned salaries of 47250

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Unformatted text preview: t 320 Interest Revenue (for February) 150 Interest Receivable (accrued Jan. 31) 170 To record interest received. 179 Accruing Uncollected Revenue Interest Revenue Interest Receivable Cash Jan 31 170 Jan 31 170 GENERAL JOURNAL Debit Jan 31 Interest Receivable 170 Interest Revenue To record interest revenue earned Credit 170 Accruing Uncollected Revenue Cash Jan 31 170 Feb 15 Feb 15 320 Interest Revenue Interest Receivable Jan 31 170 170 Feb 15 150 GENERAL JOURNAL Debit Feb 15 Cash Credit 320 Interest Revenue 150 Interest Receivable 170 To record interest revenue received Accruing Unpaid Expenses Examples Include: Hey, when do we get paid? Wages and Salaries 182 Accrued Salaries - Salaries Paid for after the Service Has Been Performed. Accrued Salaries Salaries Expense Oct 31 3,000 Salaries Payable Oct 31 3,000 GENERAL JOURNAL Debit Oct 31 Salaries Expense 3,000 Salaries Payable Accrue salary expense for the month Credit 3,000 How much money must the company pay to the employees? Accruing Unpaid Expenses $10,000 Bi-Weekly Wages $3,000 Wages Expense Monday, Oct 29 $7,000 Wages Expense Wednesday, Oct 31 Friday, Nov 9 Let’s look at the entry for Nov 9. Let’s look at the entry for Nov 9. 185 Accruing Unpaid Expenses The liability is extinguished when the debt is The liability is extinguished when the debt is paid. paid. This takes care of the new wages expense not recorded GENERAL JOURNAL This takes care of the “payable” already recorded P Date Account Titles and Explanation Nov 9 Wages Expense (for Oct) Wages Payable (accrued in Nov) R Debit Credit 7,000 3,000 Cash 10,000 Bi-weekly payroll for Oct 29-Nov 9 This is what the employees were paid 186 Accruing Unpaid Expenses Wages Expense Cash Wages Payable Oct 31 3,000 Oct 31 3,000 GENERAL JOURNAL Debit Oct 31 Wages Expense 3,000 Wages Payable To accrue wages owed to employees Credit 3,000 Accruing Unpaid Expenses Wages Expense Cash Nov 9 10,000 Wages Payable Oct 31 3,000 Nov 9 7,000 Nov 9 3,000 Oct 31 3,000 GENERAL JOURNAL Debit Nov 9 Wages Expense 7,000 Wages Payable 3,000 Cash Bi-weekly payroll for Oct 29-Nov 9 Credit 10,000 ADJUSTMENT Review Increase a Revenue If it is a prepaid adjustment If it is an accrued adjustment Decrease a Liability Increases an Asset Increase an Expense If it is a prepaid adjustment Decrease an Asset If it is an accrued adjustment Increase a Liability 189 Closing the “Temporary” Equity Accounts Close Revenue accounts to Income Summary. Close Expense accounts to Income Summary. The closing process gets the temporary accounts ready for the next accounting period. Close Income Summary account to Capital Close Withdrawals to Capital. 190 Individual Revenues Individual Expenses 2 Income Summary 3 Retained Earnings 4 Dividends 1 Retained Earnings is a permanent account; the others shown here are temporary Ledger Accounts Service Interest Insurance Revenue Earned Expense Bal 5000 Bal 50 Bal 70 Utility Exp Wages Exp Interest Exp Bal 115 Bal 550 Bal 15 194 Journal Entry to Close Revenu...
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This note was uploaded on 09/29/2013 for the course AC 202 taught by Professor Nancyeverett during the Fall '09 term at Park.

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