PATRICK EVANS ACCT290 WEEK 4 REVERSING ENTRIES JOAN GAPP Journal entries are used to change accounting information in financial systems. Following the double-entry system used in modern accounting, these entries always affect at least two accounts -- one account is debited, while another account is credited. A reversing entry is a journal entry that inverts a previously recorded "regular" entry. The use of reversing entries is optional, but it offers certain advantages, making them very popular
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less profit compared to the survey report. The major contribution to the expenses for Kims is coming from the payroll of employees and their own drawings. Rest of the expenses are comparable to the survey findings. Payroll expenses are more than double the survey report. Hence Kims need to focus on
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respectively. 9. The double-entry system of accounting refers to the placement of a double line at the end of a column of figures. 10. A credit balance in a liability account indicates that an error in recording has occurred. 11. The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement. 12. Revenues are a subdivision of retained earnings. 13. Under the double-entry system, revenues must
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Double Entry “[Accounting] now has the potential to make or break the planet” (White p. 8). That is the tone the Jane Gleeson-White used to set the mood of the book. You had warned me that she would be “preachy” in the end of the book, but I didn’t know how preachy. I will cover that in the end of this paper. White explores the origins of double entry in a rather interesting way. She makes you feel that accounting is the most important subject that man has ever created and we owe everything we
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Accounting Cycle Yesenia Arroyo AC114 June 24, 2014 Dr. Tonjua McCullough Accounting Cycle I. Introduction II. Accounting in Action a. Identify b. Record c. Communicate III. Accounting Cycle d. Analyze Transactions e. Journalize the Transactions f. Post to Ledger Accounts g. Prepare a Unadjusted Trial Balance h. Journalize and Post Adjusting Entries i. Prepare an Adjusted Trial Balance j. Prepare Financial Statement
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Case 13-01 Refer-a-Friend Program “Runway Discount (“Runway” or the “Company”) is a privately held online retailer that sells discounted high-end fashion. In an effort to increase its sales and customer base, Runway implemented a customer referral marketing campaign (the “Refer-a-Friend Program”) whereby existing customers can refer friends to Runway and receive a $25 credit towards the purchase of future merchandise”(Deloitte.com, n.d.). Runway offers a $25 gift card to the customers who refer
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CHAPTER STUDY OBJECTIVES 1. Analyze the effect of business transactions on the basic accounting equation. Each business transaction must have a dual effect on the accounting equation. For example, if an individual asset is increased, there must be a corresponding (a) decrease in another asset, or (b) increase in a specific liability, or (c) increase in stockholders’ equity. 2. Explain what an account is and how it helps in the recording process. An account is an individual accounting record of
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Accounting for a Merchandising Business In this lesson, we examine the accounting for merchandising operations -- those that sell products. The products held for sale are called inventory, or more specifically, merchandise inventory. Inventory is a current asset that will be sold to yield a profit--and the adage "buy low, sell high" is a succinct way to state a merchandiser's profit strategy. In addition to introducing a new asset, we also introduces a new cost category, and a new name for the
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P18-6 (Long-Term Contract with Interim Loss) On March 1, 2010, Pechstein Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,400,000. The building was completed by October 31, 2012. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2010, 2011, and 2012 are given below. 2010 2011 2012 Contract costs incurred during the year $2,880,000 $2,230,000 $2,190,000 Estimated
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Week 6 Assignment BUS 599 Introduction to Quantitative Principles Professor Gary Hanney August 1, 2011 Week 6 Assignment Balance Sheet | | Season 1 | | Season 2 | | Season 3 | Assets | | | | | | | | | | Cash | 214.6 | | 367 | | 514.6 | | | Inventories | 1.71 | | 1.14 | | 3.2 | | | Equipment | 5.75 | | 5.75 | | 5.75 | | | Total Assests | 222.06 | | 373.89 | | 523.55 | | | | | | | | | Liabilities | | | | | | | | | Accounts Payable
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