Assets Liabilities Stock Equity Example Wages earned during the period but not

Assets liabilities stock equity example wages earned

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Assets = Liabilities + Stock. Equity Example: Wages earned during the period but not yet paid are accrued. NE I D 1. Prepaid insurance is reduced for the portion of the policy that has expired during the period. ___D____ ____NE___ ____D___ 2. Interest incurred during the period but not yet paid is accrued. ___NE___ ___I___ ___D___ 3. Depreciation for the period is recorded. ___D___ ____NE__ ___D___ 4. Revenue is recorded for the earned portion of a liability for amounts collected in advance from customers. ___NE___ ___D___ ___I___ 5. Rent revenue is recorded for amounts owed by a tenant but not yet received. ____I___ ___NE___ ___I___ 6. Income taxes owed but not yet paid are accrued. ___NE___ ___I___ ___D___
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Exercise 4-25 The Accounting Cycle The steps in the accounting cycle are listed in random order. Fill in the blank next to each step to indicate its order in the cycle. The first step in the cycle is filled in as an example. Order Procedure ____4____ Prepare a work sheet. ____7___ Close the accounts. 1 Collect and analyze information from source documents.
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  • Fall '10
  • MANAGE
  • Balance Sheet, Generally Accepted Accounting Principles, life insurance policy, Revenues – Expenses, Equity+ Revenues

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