ACCT 201 1st Edition Lecture 9Outline of Last Lecture I. Examples of Completing a Balance SheetOutline of Current LectureII. Revenue Recognition PrincipleIII. Matching PrincipleIV. T TablesCurrent LectureRevenue Recognition Principle – recognize revenue when action happens, not exchange of moneyMatching Principle- when you match your expensesActual Accounting1. Completed $2,500 of work on Jan. 27 and mailed the bill to customerA = L + SE+2,500 acct receivable (DR) +2,500 service revenue (CR)Feb. 15 customer pays bill in fullGet cash (asset)Give up acct receivable (asset)+2,500 cash-2,500 acct receivableCustomer pays for work completed Jan. 27 same dayService revenue @2,500Cash $2,500A = L + SE+$2,500 cash +2,500 service revenue2. Received telephone bill of $200 due by Feb. 10 on Jan. 22Telephone expense (SE)Account Payable (liability)These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.A = L + SE-200 acct payable -200 telephone expensePaid on Feb. 10A = L + SE-200 cash -200 acct payable+DR +CR +CR-CR -DR -DRA == L + SELeft Side Right sideDebit Side Credit side(DR) (CR)-every event must have a min. of 1 DR and
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