Intro to Adjusting Entries

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Intro to Adjusting Entries


Lecture number:
8
Pages:
3
Type:
Lecture Note
School:
Miami University, Oxford
Course:
Acc 221 - Intro to Financial Accounting
Edition:
1
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Lecture 8 Outline of Previous Lecture  Chapters 5 & 6: Closing Accounts & Purchasing on Account  Closing accounts and post-closing trial balances o Closing entries o Steps in accounting cycle  Purchasing on Account o New Liability o Making a partial payment  Paying interest o Paying interest for 2 months Outline of Current Lecture  Chapters 7: Intro to adjusting entries  Service company basics o Similar to merchandising accounts, only a few differences o Supply and depreciation accounts  Adjusting journal entries o Adjusting entries o Depreciation adjusting entries o Depreciation errors o Supply adjusting entries o Supply errors Current Lecture  Chapters 7: Intro to Adjusting Entries  Service Company Basics o Similar to merchandising accounts, only a few differences  Accounting system works for any type of company  No inventory asset accounts  No cost of goods sold  Not selling an actual product, so do not need these accounts  Service revenue accounts, instead of sales revenue  Truck rent revenue account, instead of office renting o Supply and depreciation accounts  Rent:  Dr. Expense Rent, Cr. Cash  Supplies – don’t intend to sell, last less than 1 year (gas in mower):  Dr. Supplies Expense account, Cr. Cash  Bill a customer with an invoice for services done: ACC 221 1st Edition



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