INDIVIUAL PROJECT 2 Alan Paschal ACCT 205 May 6 2012 K.K. INDIVIUAL PROJECT 2 Okay minion you have been given to me to train on adjusting entries. What I tell all my trainees just read understand and you may ask questions through, but you might want to wait until the end and ask all of them in the end. Adjusting entries are made so that records adhere to the revenue identification and corresponding principles. Adjusting entries may have an effect on monies or overhead in more in multiple
Words: 851 - Pages: 4
Chapter 3 (REVIEW-Self study chapter) After studying this chapter, you should be able to: Understand basic accounting terminology. Explain double-entry rules. Explain how transactions affect the accounting equation. Identify the steps in the accounting cycle and the steps in the recording process. Explain the reasons for and prepare adjusting entries. Explain how the type of ownership structure affects the financial statements. Prepare closing entries and consider other matters relating
Words: 1362 - Pages: 6
Accrued Revenues Accrued revenues are used for transactions in which goods and services have been provided, but cash hasn't yet been received (Shanker, 2013). The most common accrued revenue situation is interest that has been earned but not yet received. When the interest is received, the entry is to debit cash, increasing it and adding it to the journal entree. The credit interest receivable will be marked by zeroing it out. The unrecorded revenues due to consumers not yet paying for the good
Words: 316 - Pages: 2
financial information. www.investorworld.com 2. Basic accounting formula- Assets = Liabilities + Capital This formula is for double entry bookkeeping systems. This formula must always balance so that the company has the assets and funds it needs to operate. www.accountingtools.com 3. Transaction, T-account- is also a set of financial records that also use double entry bookkeeping. The name T-account comes from the appearance of the records. www.investopedia.com 4. Debit and credit-
Words: 325 - Pages: 2
Brandywine Homecare 1 Brandywine’s 2007 Homecare Michelle Ray HSA 525 July 17, 2011 Strayer University Online Brandywine Homecare 2 Construct Brandywine’s 2007 Income Statement An income statement is the amount of revenue earned and expenses incurring by a business over a period of time. The income statement is separated into two parts, the revenue or moneys coming into a business and the expenses or the money going out of the business. Brandywine’s 2007 Income Statement Revenue
Words: 1141 - Pages: 5
STEPS IN ANALYZING TRANSACTION Read the transaction to understand what is happening and how it affects the business. Example, the business has more Revenue, or has more Expenses, or has more Cash, or Owes less to Creditors. Identify the accounts involved, and decide whether the accounts are increased or decrease. Look for Cash first; you will quickly recognize if Cash is coming in or going out. Decide on the Classifications of the accounts involved. (for Example, Equipment is something
Words: 516 - Pages: 3
ACC/290 Week one’s reading talked about the four basic financial statements and how financial statements would be useful to external users. We also learned the rules of credits and debits. As a team, we have come together and discussed how these objectives relate to the practice of accounting and its uses in business. The four basic financial statements are Balance Sheet, which includes a summary of a company's assets, liabilities, and shareholders equality at a specific point and time. The
Words: 634 - Pages: 3
documents, there are many documents for many transactions and they all have their own purposes and uses. It is also important to understand the difference between a Credit and a Debit entry to fully interpret the source documents. The basic rule of double entry bookkeeping is that for every debit there must always be an equal and corresponding credit. A Credit entry is any money that is entering the account. A Debit entry is any money that is leaving the account. Invoices: The seller of goods or
Words: 715 - Pages: 3
information. The FASB issued the following guideline for recognizing revenue: "Revenue is recognized when it is realized or realizable and it is earned" (Siegel, Levine, Qureshi, & Shim, 2001). Analysis and Journalizing Many businesses use a double-entry system that is a method that records every action with a debit and a credit. In order to make both sides of an accounting equation equal, the corporation must figure how an action will affect both sides of the equation. Credit items display
Words: 919 - Pages: 4
ACC 290 Final Exam 1) Which financial statement is used to determine cash generated from operations? A. Income statement B. Statement of operations C. Statement of cash flows D. Retained earnings statement 2) In terms of sequence, in what order must the four basic financial statements be prepared? A. Balance sheet, income statement, statement of cash flows, and capital statement B. Income statement, capital statement, statement of cash flows, and balance sheet C. Balance sheet, capital statement
Words: 1713 - Pages: 7
