Fall 2007 Lecture 6 Recording various expenses

Fall 2007 Lecture 6 Recording various expenses - ACCT-101...

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ACCT-101 Class 5  Matching principle continued and  Recording various expenses
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Outline Business example (continued) Record various expenses using debits and  credits convention and T-accounts A short summary of assets account and  liabilities account Q&A of homework questions
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Matching expenses against revenues When revenue is recorded, all expenses  necessary to generate that revenue must also  be recorded on the same income statement. If expenses are not associated with a  particular sale, then record expenses in the  period it was incurred.   
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Emmy’s Wooden Shoes Summary of expenses discussed:  Cost of goods sold;   Utility expense;   Rent expense;  Supply expenses; The business paid cash in advance
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Sometimes ……      The business recorded expenses before it paid in  cash.              For example, Emmy’s Wooden Shoes      1) Payday is every Friday      2) The pay is $100 per day per employee and the  number of employee is 10       3) The company needs to prepare the financial  statement for August 2006        
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Calendar: August 2006 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 ses of the moon: 2: 9: 15: 23: 31:
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This note was uploaded on 04/08/2008 for the course ACCT 101 taught by Professor Yang during the Spring '08 term at Georgetown.

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Fall 2007 Lecture 6 Recording various expenses - ACCT-101...

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