Matrix inc puts 60000 into a mmkt account on 12112 the

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Unformatted text preview: trix Inc. puts $60,000 into a MMKt account on 12/1/12. The account pays interest Quarterly at 3% (pays 2/28, 5/31 etc). 12/31/12: How much interest received? How much interest earned? What happens 2/28/13? 4-12 Accrued Expenses Involving Estimates Certain circumstances require Certain circumstances require adjusting entries to record adjusting entries to record accounting estimates. accounting estimates. Examples include . . . Examples include . . . Depreciation Depreciation Bad debts Bad debts Income taxes Income taxes 4-13 Adjusted Trial Balance 4-14 Preparing Financial Statements The next step in the accounting cycle is The next step in the accounting cycle is tto prepare the financial statements. .. .. o prepare the financial statements. Income statement, Income statement, Statement of stockholders’’ equity, Statement of stockholders equity, Balance sheet, and Balance sheet, and Statement of cash flows. Statement of cash flows. 4-15 Relationship between Adjusted Trial Balance and Financial Statements 4-16 Closing the Books Closing entries: Closing entries: Even though the 1. Transfer net income (or Transfer Transfer balance sheet account 1. Transfer net income (or ll...
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This note was uploaded on 01/30/2014 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas.

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