2 to record accrued salaries of 300 b green hills

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(2) To record accrued salaries of $300. b. GREEN HILLS RIDING STABLE, INCORPORATED General Journal Page 4 Date Account Titles and Explanation Post. Ref. Debt Credit 20 10 Adjusting Entries Jul y 3 1 Depredation Expense— Buildings (-SE) 520 2 0 0 Accumulated Depreciation—Buildings (-A) 141 2 0 0 To record depreciation expense. 3 1 Salaries Expense (-SE) 507 3 0 0 Salaries Payable (+L) 206 3 0 0 To record accrued salaries. c. GREEN HILLS RIDING STABLE, INCORPORATED General Journal Page 4 Date Account Titles and Explanation Post. Ref. Debt Credit 2010 Closing Entries July 31 Horse Boarding Fees Revenue 402 4 5 0 0 Riding Lesson Fees Revenue 404 3 6 0 0 Income Summary 600 8 1 0 0 To close revenue accounts. 31 Income Summary 600 4 0 0 0 Salaries Expense 507 1 7 0 0 Feed Expense 513 1 1 0 0 Interest Expense 540 2 0 0 Miscellaneous Expense 568 8 0 0 Depreciation Expense—Buildings 520 2 0 0 To close expense accounts. 31 Income Summary 600 4 1 0 0 Retained Earnings 310 4 1 0 0 To close Income Summary account. 31 Retained Earnings 310 1 0 0 0
Dividends 320 1 0 0 0 To close dividends account. Key terms * A ccounting cycle Series of steps performed during the accounting period to analyze, record, classify, summarize, and report useful financial information for the purpose of preparing financial statements. The steps include analyzing transactions, journalizing transactions, posting journal entries, taking a trial balance and completing the work sheet, preparing financial statements, journalizing and posting adjusting entries, journalizing and posting closing entries, and taking a post-closing trial balance. Accounting system A set of records and the procedures and equipment used to perform accounting functions. Accounts payable Amounts owed to suppliers for goods or services purchased on credit. Accounts receivable Amounts due from customers for services performed or merchandise sold on credit. Accumulated amortization A contra account to intangible assets. Accumulated depreciation A contra account to depreciable assets such as buildings, machinery, and equipment. Bonds payable Written promises to pay a definite sum at a certain date as evidenced by formal printed certificates that are sometimes secured by liens on property, such as mortgages. Buildings Structures used to carry on the business. Cash Includes deposits in banks available for current operations at the balance sheet date plus cash on hand consisting of currency, undeposited checks, drafts, and money orders. Cash equivalents Highly liquid, short-term investments acquired with temporarily idle cash. Classified balance sheet Subdivides the three major balance sheet categories (assets, liabilities, and stockholders' equity) to provide more information for users of financial statements. Assets may be divided into current assets; long-term investments; property, plant, and equipment; and intangible assets. Liabilities may be divided into current liabilities and long-term liabilities.

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