COMMERCE 1AA3 Lecture 8: Class 8
10 Mar 2017
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You need to know what accounts are involved in accrued revenue and accrued expenses. If abc"s 5-day weekly payroll was , and the year ended on a wednesday. Prepare the adjusting entry as of scal year end. It needs to be stated that 3 days of wages have been used and are now owed. This entry decreases net income, revenues earned and equity. Not an adjusting entry because cash is involved. Current liability goes down, expense goes up, net income goes down, retained earnings goes down, equity goes down, cash goes down. On september 1, 2013, abc puts ,000 in a saving account for one year. 12% receivable every six months, on march 1 and september 1. Don"t need to know closing entries for the quiz or the midterm. Liquidity ratios (working capital, current ratio, acid test or quick ratio) measure a company;s ability to pay short term debt or obligations.
