Acc 205 Week 2 Assignment Essay

1010 WordsMar 5, 20155 Pages
1. Recognition of concepts a b c d e f g h Interest owed on the company's bank loan, to be paid in early July- Accrued Expense Professional fees earned but not billed as of June 30- ( Accrued Revenue) Office supplies on hand at year-end (Prepaid Expenses) An advance payment from a client for a performance next month at a convention (Unearned Revenue) The payment in part (d) from the client's point of view (Prepaid Expense) Amounts paid on June 30 for a 1-year insurance policy (Accrued Expense) The bank loan payable in part (a) (Accrued Expense) Repairs to the firm's copy machine, incurred and paid in June (Accrued Expense) 2. Understanding the closing process. a. Accounts on the Post-closing Trial Balance- a) Note Payable, Product Revenue, Accounts Receivable, Utility Expense, Accumulated Depreciation: Building, Accounts Payable, Cash, Supplies Expense b. Commonly known as temporary, or nominal, accounts- Product Revenue, Utility Expense, and Supplies Expense c. Generate a debit to Income Summary in the closing process- Product Revenue d. What accounts are closed to the capital account in the closing process- Alex Kenzy, Drawing 3. Adjusting entries and financial statements ● a) B- Adjustment of an Unearned Revenue b) 12/31/20XX c) Unearned Revenue Revenue Increased total revenue by $750.00 Debit $ 750.00 Credit $750.00 ● a) D- an adjustment to record an Accrued Revenue Debit b) 12/31/20XX Accounts Receivable Revenue c) It would add $1500 to the Total Revenues $1500 $1500 Credit Year-end adjusting entry to reflect services provided by year end ● a) C - an adjustment to record an accrued expense Debit b) 12/31/20XX Salaries Expense Salaries Payable Record the accrued salaries to year end c) Increase total expense by $1,000.00 $1000 $1000 Credit ● a) A- An adjustment of a prepaid expense Debit b) 12/31/20XX Supplies Expense Supplies Adjusting

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