Textbook Notes (368,013)
Canada (161,562)
Business (2,387)
BU127 (156)
Chapter 4

BU127 Chapter 4 Notes
Premium

2 Pages
107 Views
Unlock Document

Department
Business
Course
BU127
Professor
James Moore
Semester
Fall

Description
BU127 Chapter 4 Notes Adjusting Revenues and Expenses Accounting Cycle 1. During the Period a. Analyze, record and post transactions 2. At the End of the Accounting Period a. Prepare a trial balance b. Analyze account balances c. Record and post adjustments d. Prepare an adjusted trial balance 3. Prepare a set of financials 4. Close accounts a. Revenues, gains, expenses and loses to Retained Earnings 5. Prepare a post closing trial balance Purpose and Types of Adjustments • Adjusting Entries: are entries necessary at the end of the accounting period to  identify and record all revenues and expenses of the period Types of Adjustments o Deferred Revenues: are previously recorded liabilities that need to be  adjusted at the end of the accounting period to reflect the amount of  revenues earned o Accrued Revenues: are previously unrecorded revenues that need to be  recorded at the end of the accounting period to reflect the amount earned  and its related receivable account o Deferred Expenses: are previously acquired assets that need to be adjusted  at the end of the accounting period to reflect the amount of expense  incurred in using the assets to generate revenue o Accrued Expenses: are previously unrecorded expenses that need to be  recorded at the end of the accounting period to reflect the amount incurred  and its related payable account Adjustment Process 1. Identify the type of adjustment 2. Determine the amount 3. Record the adjusting journal entry Trial Balance • Is a list of all accounts with their balances to provide a check on the equality of  the debits and credits Contra Account • Is an account that is an offset to or reduction of, the primary account Carrying amount (book value, net book value) • Is the difference between its acquisition cost and accumulated depreciati
More Less

Related notes for BU127

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit