MGMT 2101 Lecture Notes - Lecture 1: Accounts Payable, Trial Balance, Retained Earnings
26 Dec 2015
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Victoria garden car ltd at september 30, 2014. Dividends service revenue utilities expense delivery expense salary expense. 6000 anytime you see the word expense after an item, it goes on dividends are distributions to the owners of the company. They are not expenses, they reduce retained earnings when declared. Since they decrease r/e they are debits to record dividends when declared: Victoria garden centre ltd income statement for period ending september 30, 2014. 29700 you need to prepare inc statement first. Cash when payables are paid you debit them. 31-oct you can either make one big entry for both expenses or two separate. Cash put the debit first then the credits no ratios in any chapter until the end of the course pg 97 p2-55a. 100 when we first record payables, they are credits, when we pay them off, we debit them. K utility expense account payable cash accounts receivable rent advertising cash.
