ACCT 209 Lecture Notes - Lecture 3: Deferral, General Ledger, Trial Balance

64 views7 pages

Document Summary

Adjusting entries (ch 3) and recording business transactions (ch 2) Goal is to record events when they occur rather than based on when cash is received or paid. Record expenses in the same period as the revenue that the expense helped generate: match expense with revenue that the expense helped earn, record expense in time period to which it relates, record expense in systematic and rational way (depreciation) Accrual basis requires adjusting entries to ensure that all revenues and expenses are correctly recorded (on. Income statement) and that all assets and liabilities are correctly stated (on balance sheet). Adjusting entries: dated on last day of accounting period, each entry affects one income statement account (revenue or expenses) and. 1 balance sheet account (asset or liability: never affects cash! When all adjusting entries have been recorded, the adjusted trial balance, or trial balance after adjustments, is prepared.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions