Additional Adjusting Entries

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Additional Adjusting Entries


Lecture number:
10
Pages:
2
Type:
Lecture Note
School:
Miami University, Oxford
Course:
Acc 221 - Intro to Financial Accounting
Edition:
1
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Lecture 10 Outline of Previous Lecture  Chapters 5, 6, & 7: Review Adjusting Entries & Accounts  Closing revenue and expense accounts o Closing accounts o Closing process o Other closing information Outline of Current Lecture  Chapters 7 & 8: Additional Adjusting Entries  Accrued Liabilities o Recording entries even if you have not paid  Unearned Revenue Accounts o Someone pays us in advanced for work o Additional Applications  Accrued Assets o People have not paid us for services completed Current Lecture  Chapters 7 & 8: Additional Adjusting Entries  Accrued Liabilities o Accrued Liabilities - Recording entries even if you have not paid  Wages:  If paying workers on 29th of month, must also include pay for 30th and 31st, even if you plan to include the days in next month’s wage pay  Put this in the liabilities account o Dr. Wages Expense (Equity) o Cr. Wages Payable (Liability); if wages were already paid, you would Cr. Cash, rather than wages payable o Workers have a right to this money, you owe them for the two days they have worked and not been paid. Now show all wages for accounting period  Paying off wages payable  Get rid of liability, pay off with cash o Dr. Wages Payable o Cr. Cash  Errors if forget to adjust  Expenses underrepresented  Net income, profit, assets overrepresented ACC 221 1st Edition



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