Would cause the Trial balance not to balance
you must see additional information and adjusting entries prepare an accordance with accept principles. The balance is accrued or prepaid
fees earned-950,000 office expense -222,000 miscellaneous expense-16,000 wage expense-478,000
debit bad debts accountcredit accounts receivable
1 - Collect source document 2 - Analyze the transaction 3 - Journalize transaction 4 - Posting transaction 5 - Prepare unadjusted trial balance 6 - Prepare adjusting entries 7 - Prepare trial balance 8 - Prepare financial statements
After a bank reconciliation is prepared, prepare an adjusting journal entry on the company's books for all items that were recorded by the bank, but not recorded in the books. These usually include:Corrections made by the bankBank feesInterest income recorded by the bankInsufficient fund (NSF) checksElectronic Fund Transfer (EFT) deposits made to the bank account, but not recorded in the books.
you must see additional information and adjusting entries prepare an accordance with accept principles. The balance is accrued or prepaid
26.0
fees earned-950,000 office expense -222,000 miscellaneous expense-16,000 wage expense-478,000
debit bad debts accountcredit accounts receivable
1 - Collect source document 2 - Analyze the transaction 3 - Journalize transaction 4 - Posting transaction 5 - Prepare unadjusted trial balance 6 - Prepare adjusting entries 7 - Prepare trial balance 8 - Prepare financial statements
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The bad debt is recorded against the asset, which is the debtors control account, or account recievable, for example company A is owed $1000 by company B, during the year, company B approaches company A and states that it is going out of business and can only pay them $600, therefore the bad debt is $400 Credit the debtors account of company b with $400 and debit bad debt expense $400
The end-of-period spreadsheet is a working paper used to summarize adjusting entries and the account balances for the financial statements.
Bad debts DR Allowance for doubtful debt CR Some accounting practioners may use provison for doubtful debts instead of allowance for doubtful debts. Example of bad debts, suppose a customer was unable to pay their debts totalling $150. This will be the journal entry for the transaction: Bad debts 150 Allowance for doubtful debts 150
Errors can be rectify by adjusting the previously made journal entries as per the errors found and suspense account is created when there is some confusion or information missing without which it is not possible to prepare full double entry so that suspense account is used there to temporarily complete the transaction.
After a bank reconciliation is prepared, prepare an adjusting journal entry on the company's books for all items that were recorded by the bank, but not recorded in the books. These usually include:Corrections made by the bankBank feesInterest income recorded by the bankInsufficient fund (NSF) checksElectronic Fund Transfer (EFT) deposits made to the bank account, but not recorded in the books.
Accounting Cycle is a series of accounting process which begins with the identification of an economic activity or transaction, recording of the economic activity and ends with the prepration of the financial statements. The Accounting Cycle is a repeated process where one cycle ends and another cycle (as above) is repeated againThe steps involve in the Accounting Cycle:1. Analyse source documents like invoices, receipts, payment vouchers, etc2. Record transactions in Journals ( sales journal, purchase journals,etc)3. Post to ledger accounts4. Prepare Unadjusted Trial Balance5. Journalize adjusting entries6. Post adjusting entries7. Prepare Adjusted Trial Balance8. Journalize closing entries9. Post closing entries10. Prepare post-closing Trial Balance11. Prepare financial statements like the Income Statement