while the cash has neither been received nor recorded. A typical example is credit sales. The revenue is recognized through an accrued revenue account and a receivable account. When the cash is received at a later time, an adjusting journal entry is made to record the cash receipt...
1.Salaries earned by the HR department employees that haven’t been recorded or paid yet, amount to $10,000. This is an accrued expense for which the following adjusting entry is made: 2.At the beginning of December, the company provided $3,500 worth of service that the customer will pa...
2. Accrued Expenses: Accrued expenses refer to expenses that have been incurred but have not yet been recorded in the accounting records. Examples of accrued expenses include salaries payable, utilities payable, or interest payable. Adjusting entries are made to recognize these expenses in the approp...
【财务会计】Chapter3ADJUSTINGTHEACCOUNTS Chapter3-1 StudyObjectives 1.Explainthetimeperiodassumption.2.Explaintheaccrualbasisofaccounting.3.Explainthereasonsforadjustingentries.4.Identifythemajortypesofadjustingentries.5.Prepareadjustingentriesfordeferrals.6.Prepareadjustingentriesforaccruals.7.Describethenatureand...
会计学原理 英文版 第21版 第三章 Adjusting Accounts and Preparing Financial Statements.3-1 AdjustingAccountsandPreparingFinancialStatements Chapter3 PowerPointAuthors:SusanCoomerGalbreath,Ph.D.,CPACharlesW.Caldwell,D.B.A.,CMAJonA.Booker,Ph.D.,CPA,CIACynthiaJ.Rooney,Ph.D.,CPA Copyright©2013byThe...
Now let’s change the subject and look at adjustments for accrued expenses. 34 34 Part One In our adjusting journal entry we will debit, or increase, salaries expense and credit, or increase, salaries payable. After the adjustment, salaries expense for 2007 is stated properly. Let’s look ...
The adjusting entry to record accrued revenue is normally a debit to Accounts Receivable(or Interest Receivable, etc.) and a credit to a revenue account. 2. Accrued Expenses Common examples of accrued expenses include interest, rent, taxes, utilities and salaries. Accrued expenses result from the...
18、 the payroll for the two weeks from December 26, 2013 through January 9, 2014. Here is the journal entry for the payroll:,P 1,Accrued Interest Expenses,FastForward borrowed $6,000 from First National Bank on December 1, 2013. The note bears interest at the annual rate of 6% and ...
The adjusting entry to record accrued revenue is normally a debit to Accounts Receivable(or Interest Receivable, etc.) and a credit to a revenue account. 2. Accrued Expenses Common examples of accrued expenses include interest, rent, taxes, utilities and salaries. Accrued expenses result from the...
Since the firm is set to release its year-end financial statements in January, an adjusting entry is needed to reflect theaccrued interestexpense for December. To accurately report the company’s operations and profitability, the accrued interest expense must be recorded on the December income state...