Acc notes - Interest @ 5% Problem 2-1 Worksheet INTEREST =...

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Cash Basis- Revenue when earned -> Received Expenses when Paid Accruals- Revenue Realization/Recognition(to record it) Recognize it when it is earned (whether or not cash is rec'd) Expenses - Recognize as Incurred/or Properly Matced w/ Related Revenue or time period A = L + CS + RE Decrease Increase -> A/P Decrease -> (EXP) Loan = 1,000
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Unformatted text preview: Interest @ 5% Problem 2-1 Worksheet INTEREST = PRINCIPLE X RATE X TIME Apr-07 90 Jun-07 70 Oct-07 30 Operating is revenue and expenses, and interest Investing is land Financing is dealing with common stock, bank note (NOT INTEREST) Interest, rent, depreciation, unearned revenue, supplies...
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