Review Adjusting Entries & Accounts

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Review Adjusting Entries & Accounts


Lecture number:
9
Pages:
2
Type:
Lecture Note
School:
Miami University, Oxford
Course:
Acc 221 - Intro to Financial Accounting
Edition:
1
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Lecture 9 Outline of Previous 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 Outline of Current Lecture  Chapters 5, 6, & 7: Review Adjusting Entries & Accounts  Closing revenue and expense accounts o Closing accounts o Closing process o Other closing information Current Lecture  Chapters 5, 6, & 7: Review Adjusting Entries & Accounts  Closing revenue and expense accounts o Closing accounts  In closing process, expense and revenue accounts will reset to zero  All other accounts, including assets, liabilities, and common stock roll over  Closing expense and revenue accounts  Net income - subtract all expense accounts from revenue  Net income + old retained earnings = new retained earnings balance o Closing process  During closing process for expense accounts, retained earnings is debited, decreasing retained earnings  During closing process for revenue accounts, retained earnings is credited, increasing retained earnings  If sum of revenue is larger than sum of expenses, retained earnings will increase  If sum of expense is larger than sum of revenue, retained earnings will decrease o Other closing information ACC 221 1st Edition



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