MGT120H5 Lecture Notes - Lecture 4: Deferral, Financial Statement, Trial Balance
12
MGT120H5 Full Course Notes
Verified Note
12 documents
Document Summary
Adjust records to make sure everything is reported for period and post to accounts. Accrual basis revenues recorded when earned and expenses recorded when occurred. Cash basis transaction is recorded when cash is received or paid. When to record revenue and the amount of revenue accorded. Identify all expenses during the period and measure the expenses and record. Deferrals expenses paid in advance but not yet incurred/revenue collected in advance but not yet earned. Depreciation allocation of the cost of a property, plant, equipment to expense over the asset"s useful life. Accruals (not) expenses incurred but not recorded or paid/revenues earned but not yet recorded or collected. Cr prepaid rent 1000 (3000 x 1/3) remain on hand (bought for ) May 1st there was for future services) Cr service revenue 1325 years purchased for . Cr accumulated depreciation 344 (16500 x 1/48) rounded years. Interest on the note payable is 10% and is paid yearly.
