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acctkilly

Terms

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To determine required entry to supplies account ..

debit supplies current balance,...look at end of month balance in supplies account....CREDIT amount. to supplies account
credit to supplies account records the...
reduction of the supplies asset

credit to supplies account records the
reducion of the supplies asset.

supplies account is determined by
the 3 question process
if failed to make supplies adjusting entry....
expense accounts be understated. everything else over stated
bill company for service that has already been done
debit accounts recievable. credit service revenue
however much supplies are on hand at that time are the
amount of supplies we hve so then take that away from hte supplies purchased. subtract difference. then credit amount
the effect of the wages payable adjusting entry is to
increase the employees claims to lennys assets nd reduce the owners' claim

ending retained earnings needed for balance sheet is
beg. balance in retained earning + net income
if wages payable entry is not made,
expenses, wages payable and total liabilities would be understated
total liabilities and ewuity would not be effected by the omissio of the wages payable adjusting entry
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depreciation expense account ....
reduces the owners claims to assets
expense accounts closed at end of month into retained earnings account
m
if depreciation entry not made
expense accounts, and accumulated depreciation account will be understated
gross profit
sales revene minus cost of goods sold
net income=
gross profit minue total expenses
net income increases as a result o
the operation of the business
entries made for closing process
take ending bal of revenue and expense accounts and move to retained earnings, reset to 0
income statement is sales revenue minus all of the expense accounts and u get
the net income
post-closing trial balance
is all accounts after closing revenues and expenses
calculation of balance sheet for month
beginning balance of retained earnings plus net income from income statement

retained earnings on balance sheet is from calculation of retained earnings which is from the income statement
know!
pay in advancement for service..
debit cash, credit unearned revenue
promise to pay in future is
accounts recievable
completeing a job..
service revenue
accts payable
vendor...
when u will get paid in future...
go to accounts recievable
if did not make the unearned recenue entry,
service rev,equity, net income, would be understated, total expenses wuldnt change

Deck Info

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lilblondie5454