PowerPoint - Ch.3

Cashreceivedafterrevenueisearned company delivers

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Unformatted text preview: 3-19 Revenue Principle If cash is received after the company delivers goods or services, an asset ACCOUNTS RECEIVABLE is recorded. Cash received after revenue is earned ­ Company Delivers Accounts receivable (+A) xxx Revenue (+R) xxx 3-20 MID POINT 3-21 A = L + SE ASSETS LIABILITIES Debit Credit for for Increase Decrease Debit Credit for for Decrease Increase Next, let’s see how Revenues and Expenses affect Retained Earnings. Retained 3-22 CONTRIBUTED CONTRIBUTED CAPITAL CAPITAL RETAINED RETAINED EARNINGS EARNINGS Debit Credit for for Decrease Increase Debit Credit for for Decrease Increase Expanded Transaction Analysis Model Dividends decrease Dividends Retained Earnings. Retained RETAINED RETAINED EARNINGS EARNINGS Debit Credit for for Decrease Increase Net Income increases Net Retained Earnings. Retained REVENUES Debit Credit for for Decrease Increase 3-23 EXPENSES Debit Credit for for Increase Decrease Simplified illustration of Revenues & Expenses 3-24 Simplified illustration of R...
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This note was uploaded on 10/03/2013 for the course ACC 230 taught by Professor Auerbach,m during the Fall '08 term at CSU Dominguez Hills.

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