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. 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
Even though the
1. Transfer net income (or
balance sheet account 1. Transfer net income (or
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