which side of a T account a number will be recorded on. Entering an amount on the left side of an account is called debiting the account. Making an entry on the right side is crediting the account.We commonly abbreviate debit as Dr. and credit as Cr. Double-entry accounting system • Each transaction must affect two or more accounts to keep the basic accounting equation in balance. • Recording done by debiting at least one account and crediting another. • DEBITS must equal CREDITS. If Debits are greater
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Team Reflection Paper Team B ACC/290 12/18/2012 Martha Muhammad Team B Reflection Paper Accrual Basis versus Cash Basis A business can choose between two different accounting methods. Accrual basis and cash basis are two different methods that businesses can use to record the financial transactions. Under accrual basis, a business records revenue, whenever the money is earned instead of waiting to actually receive cash payments. The accrual basis accounting allows businesses
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Case 13-1: Refer-a-Friend Program Runway Discount is an online retailer that sells discounted high-end fashion. The company decided to create the Refer-a-Friend Program where a current customer can refer a friend to the website. Once the new customer purchases merchandise, the existing customer will receive a $25 credit towards their next purchase. The $25 credit represents the fair value of the cost Runway would pay to earn a new customer from an unrelated third party or marketing firm. Runway
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Accounting Equations Johnathan Edward Wallace ACC 205 Principles of Accounting I Brent Beyer February 23, 2015 1. Recognition of normal balances The following items appeared in the accounting records of Triguero’s, a retail music store that also sponsors concerts. Classify each of the items as an asset, liability, revenue, or expense from the company’s viewpoint. Also indicate
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back five hundred years to a document describing today's double-entry accounting system. Under the double-entry system every business transaction is recorded in at least two accounts. One account will receive a "debit" entry, meaning the amount will be entered on the left side of that account. Another account will receive a "credit" entry, meaning the amount will be entered on the right side of that account. The initial challenge with double-entry is to know which account should be debited and which
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Be Our Guest Inc. Be Our Guest Inc. is a Boston based company that rented equipment to caterer’s, hotels, etc. for various events. The company was growing rapidly from the early to late 1990’s, producing revenues of $990,000 in 1991 and reaching $2.7 million in 1997. There was tremendous seasonality in their business, as the business was fast during the fall and winter holiday seasons, and during the early summer months when wedding receptions and parties flourished. Because of the seasonality
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The following are a series of unrelated situations. 1. Halen Company’s unadjusted trial balance at December 31, 2014, included the following accounts. .:. Halen Company estimates its bad debt expense to be 1½% of net sales. Determine its bad debt expense for 2014. 2. An analysis and aging of Stuart Corp. accounts receivable at December 31, 2014, disclosed the following. Amounts estimated to be uncollectible ………. $ 180,000 Accounts receivable ………………………….. 1,750,000 Allowance for doubtful
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Introductory Accounting TOPIC: What is Accounting Lecture 2: The Accounting Cycle COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969 WARNING This material has been reproduced and communicated to you by and on behalf of the University of New South Wales pursuant to Part VA of the Copyright Act 1968 (the Act). The material in this communication may be subject to copyright under this Act. Any further copying or communication of this material by you may be the subject of copyright
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tournament. Most sources of revenues will double except for contributions for a total of $85,680. Relevant expenses such as registration with state YSL, hotels, face book, marketing and advertising, and salary remain unchanged. These costs remain unchanged due to recruiters’ interest in only High School teams, and no further plans for marketing and advertising, and no salary increase. However, relevant variable expenses double as the number of teams double for a total expense of $69,046 resulting
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Week 6 HW Journal Entry Date Debit Credit A. 12/31/2015 Bond Interest Expense 156,000 Premium on Bonds Payable 4,000 ($80,000 X 1/20) Cash ($4,000,000 X 8% X 6/12) 160,000 B. 1/1/2016 Bonds Payable 400,000 Premium on Bonds Payable 6,400 Common Stock 320
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