Salaries expense e se 2800 cash a 2800 pay salaries

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Salaries Expense (+E, −SE) .. …..……………………….……… 2,800 Cash (−A) …..…………………………..……………………… 2,800 ( Pay salaries to employees ) (10) December 30 Debit Credit Dividends (+D, −SE) ……………..………….……….….…… ...... 200 Cash (−A) …..…………………………..…………………… .... 200 ( Pay cash dividends ) 39
Dr. Yu Bai, Department of Accounting and Business Law z Illustration 2-12 Posting of External Transactions of Eagle Soccer Academy from Journal Entries to General Ledger Accounts Cash Assets = Liabilities + Stockholders’ Equity Accounts Receivabl e Common Stock Retained Earnings (1) 25,000 (2) 10,000 (3) 24,000 (4) 6,000 (6) 4,300 (8) 600 (9) 2,800 (10) 200 Bal. 6,900 (7) 2,000 Bal. 2,000 Accounts Payable (5) 2,300 Bal. 2,300 Prepaid Rent (4) 6,000 Bal. 6,000 Bal. 2,300 Supplies (5) 2,300 Bal. 24,000 Equipment (3) 24,000 Salaries Expense (9) 2,800 Bal. 2,800 Deferred Revenue (8) 600 Bal. 600 Bal. 6,300 Service Revenue (6) 4,300 (7) 2,000 Notes Payable (2) 10,000 Bal. 10,000 Dividends (10) 200 Bal. 200 (1) 25,000 Bal. 25,000 0 0 Transaction numbers are shown in parentheses. Account balances are in bold. 40
Dr. Yu Bai, Department of Accounting and Business Law Trial Balance A trial balance is a list of all accounts and their balances at a particular date, showing that total debits equal total credits. Another purpose of the trial balance is to assist us in preparing adjusting entries for internal transactions (Chapter 3). Used for internal purposes only Not published to external parties Not required to follow an order of listing 41
Dr. Yu Bai, Department of Accounting and Business Law Trial Balance of Eagle Soccer Academy EAGLE SOCCER ACADEMY Trial Balance December 31, 2021 Accounts Debit Credit Cash Accounts Receivable Supplies Prepaid Rent Equipment Accounts Payable Deferred Revenue Notes Payable Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Totals $ 6,900 2,000 2,300 6,000 24,000 200 2,800 $44,200 $ 2,300 600 10,000 25,000 0 6,300 $44,200
Dr. Yu Bai, Department of Accounting and Business Law The Accounting Cycle: End of the Period Part B LO2-7 Demonstrate the purposes and recording of adjusting entries. LO2-8 Post adjusting entries and prepare an adjusted trial balance. LO2-9 Prepare financial statements using the adjusted trial balance. LO2-10 Demonstrate the purposes and recording of closing entries. LO2-11 Post closing entries and prepare a post-closing trial balance. 43
Dr. Yu Bai, Department of Accounting and Business Law The Accounting Cycle Measurement Process Record and post external transactions (Chapter 2) During the Year Record and post adjusting entries (Chapter 3, LO3–3, 3– 4) End of the Year Prepare financial statements (Chapter 3, LO3–5) Record and post closing entries (Chapter 3, LO3–6, 3–7) Reporting Process Closing Process Jan. 1 Dec.3 1 44
Dr. Yu Bai, Department of Accounting and Business Law Adjusting Entries Accrual-basis accounting creates timing differences between revenue recognition and cash inflows, and between expense recognition and cash outflows. These timing differences often cause account balances of assets, liabilities, revenues, and expenses to not be updated during the period.

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