Financial Accounting Section No.6
4. Accrued Expenses:
Are expenses incurred but not paid yet. Examples: interest, Salaries and income tax.
Important note: the interest rate is always annually.
In case of accrued expense you will find payables in the c
Financial Accounting Section No. 5 (Chapter 3)
Are entries prepared at the end of the period to assign revenues in the period in which they are earned and
expenses in the period in which they are incurred.
Bases of Accounting
Prepare adjusting entries for the following transactions.
1. Depreciation on equipment is $900 for the accounting
2. There was no beginning balance of supplies and
purchased $500 of supplies during the period. At the end
The worksheet for Gibler Rental Company appears
below. Using the adjustment data below, complete
the worksheet. Add any accounts that are necessary.
(a)Prepaid rent expired during August, $3.
(b)Depreciation expense on equipment f
FINANCIAL ACCOUNTING SECTION NO. 7
Notes (1): in case of revenues, make an adjusting entry by the amount of revenue earned during the period.
Note (2): In case of expenses, make an adjusting entry by the amount of expenses incurred during the period.
1 The verb must agree with the subject in number and person. Like the personal pronouns, the verb has three
persons, namely the first, the second and the third.
I talk (first person)
You talk (second person)
He talks (third person)