ACTG 1P91 Chapter Notes - Chapter 4: Retained Earnings, Deferral, Accrual

102 views3 pages
2 Oct 2013
Department
Course
Professor
azurewater-buffalo510 and 64 others unlocked
ACTG 1P91 Full Course Notes
31
ACTG 1P91 Full Course Notes
Verified Note
31 documents

Document Summary

4 adjustments and closing: two types of adjustments: deferral and accrual. 1. 1 deferral adjustments are used to update accounts that are previously recorded. 1. 2 accrual adjustments are used to include transactions that are not previously recorded: examples of deferral: On september 1st 2012, you pay one-year insurance premium of ,400 for the period of september 1st 2012 august 31st 2013: dr) prepaid insurance (+a) cr) cash (-a) On december 31st 2012: dr) insurance expense (+e, -se) cr) prepaid insurance (-a) On august 31st 2013: dr) insurance expense (+e, -se) cr) prepaid insurance (-a) On january 1st 2012: dr) equipment (+a) cr) cash (-a) On december 31st 2012: dr) amortization expense (+e, -se) Equipment (+xa, -a) cr) accumulated amortization expense. **accumulated amortization is called contra-asset account, which reduces the accompanying asset account. Initially: dr) cash (+a) cr) unearned revenue (+l) As you deliver goods or perform services: dr) unearned revenue (-l) cr) revenue (+r, +se)

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers

Related Documents

Related Questions