Textbook Notes (280,000)
CA (160,000)
Brock U (1,000)
ACTG (80)
Chapter 4

Chapter 4 - Class #4

Course Code
Linda Stillabower

This preview shows half of the first page. to view the full 2 pages of the document.
Class #4! ! ACTG 1P91! October. 4th, 2011
Accounting Process (Not required for tests)
1. Transaction / Source Document
2. Analyze Transaction
3. Journalize
4. Post to Ledger
5. Trial Balance
6. Gather Data for Adjustments
7. Worksheet
8. Financial Statements
9. Journalize and Post Adjustments
10. Journalize and Post Closing
11. Post-Closing Trial Balance
12. Journalize and Post Reversing Entries
Employees payday is on Friday. However if moment transfers over fiscal period
(January - December (Friday)).
$20 - Monday
$20 - Tuesday
Dec 31!Salaries Expense!40
!!!Salaries Payable!40
4 Types of Adjustments
-All will overlap time periods
-We need to looks for
1. Apportion recorded costs to period benefited asset account/expense account
a. Ex. Rent Expense paid in advance for 3 months ($3000) in December, 2 months
would be for next fiscal year. Rent Expense gets $2000 credited and debited into
Prepaid Rent
b. Ex. Rent Expense paid in advance for 3 months ($3000) in December. Prepaid
Rent gets debited $3000. Then to adjust, $1000 is credited from Ppd Rent and
Debited into Rent Expense.
c. Ex. Amortization on a building ($2M), Building credited $100,000, Amort. Exp
debited $100,000.
2. Apportion recorded revenue to period earned liability account/revenue account
a. Ex. Unearned Revenue, from Prepaid Rent, Cash Debited $3000, Unearned
Revenue credited $3000. At the end of the month, $1000 is earned revenue, so
Unearned Revenue debited $1000, Rent Revenue credited $1000.
You're Reading a Preview

Unlock to view full version