Business Administration 2257 Study Guide - Final Guide: List Of The Shield Episodes, Petty Cash, Accrual
22 Oct 2014
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Business 2257 cheat sheet mid-term exam oct. 5th 2014. Revenue recognition occurs when the sales/ performance effect is substantially complete, in selling a good once the merchandise is sold it is recognized, in selling a service once the service is performed it is recognized. Prepaid expense- insurance, rent, supplies dr. asset account and cr. For company"s records: bank service charges dr. service expenses, cr. Nfs cheques + fees = dr. accounts recievable, cr. Sales, dr. cash (opposite if company records a higher amount then the actual amount. For banks records: opening balance taken from e/b on bank statement. Adjust the bank"s balance for any items the bank did not know about: add all outstanding deposits (deposits in transit at time of statement). Check for bank errors (rare but possible!) and add/subtract accordingly. New adjusted bank balance should reconcile with adjusted depositors balance. Petty cash account to always have the same balance.
