Journal entries Flashcards
– Adjusting entry –
provided services but has not yet received payment
D: Accounts receivable
– C: Revenue
– Adjusting entry –
provided services and is receiving payment
D: Cash (full)
– C: Revenue
– C: Accounts receivable
– Adjusting entry –
collected cash but has not yet generated revenue: initial transaction
D: Cash (full)
– C: Unearned revenue (L)
– Adjusting entry –
collected cahs but has generated a little revenue
Unearned revenue (L)
– Revenue
– Adjusting entry –
incurred expense but has not paid
Wages expense
— Wages payable
– Adjusting entry –
incurred expense and is now paying
Wages expense
Wages payable
— Cash
– Adjusting entry PROBLEM –
On Nov 30th, 2015, Overnight borrowed $4,000 from a bank by issuing an interesting-bearing notes payable. The loan is to be repaid in 3 months, along with interest computed at an annual rate of 9%.
Dec. 31 entry
Interest exp – 30
Interest payable – 30
Calculation:
4000*.09/12
– Adjusting entry –
paid for expenses in advance initial (Ex. insurance)
Prepaid insurance (A) (full)
— Cash
– Adjusting entry –
paid for expenses in advance but some time has passed
Expense
— Prepaid insurance (A)
Accumulated depreciation
contra asset
Cash over and short
exp if debit
rev if credit
cash over and short debit
cash over and short (expense)
— cash
Direct writeoff for uncollectible accounts
uncollectible accounts expense
– Accounts receivable
Uncollectible accounts – didnt pay AND adjusting allowance for doubtful accounts
Uncollectible Accounts Expense
– Allowance for Doubtful Accounts (contra-asset)
Writing off an Uncollectible Account Receivable
Allowance for Doubtful Accounts
– Accounts Receivable
Recovery of an A.Receivable Previously written Off
accounts receiv.
– allowance
Cash
– Accounts Receivable
Cogs location
income statement under revenue
Inventory purchases under perpetual v periodic
inventory
— cash or accounts payable
v
purchase
— cash or accounts payable
Recording COGS under perpetual and periodic
Cash or ac receivable
— Sales
COGS
— Inventory
v
Cash or acc receivable
— Sales
Inventory shrinkage
COGS
— inventory
record ending inventory in closing entry
COGS
— inventory (beginning)
— purchase
Inventory (ending)
— COGS
Drop in inventory value (Immaterial and material)
COGS
— Inventory
Loss from writedown of inventory (exense)
— Inventory
recording purchase at net cost and failing to pay in time for discount
inventory — discounted value
— accounts payable — discounted value
accounts payable
purchase discounts lost (non-operating expense)
— cash —total
recording purchases at gross invoice price
accounts payable – full
— cash – discounted
— purchase discounts taken – discount
Sales Returns and Allowances (category)
contra-revenue
recieving discounted amount
cash
sales discounts (contra revenue)
— accounts recievable –full
impairment of plant assets
impairment loss – amount needed to lower it to market value
— equipment
Sale of ppe
cash
accumulated depreciation
— machine
— gain on disposal plant asset
LT Note installment
Interest expense
Installment Note Payable
— Cash — total
Semiannual bond interest payment
Bond Interest expense (principal * contract rate * .5)
— cash
Bond interest adjusting entry
Bond interest expense
— bond interest payable
bond issued at discount
cash
discount on bonds payable
— bonds payable — full
amortization of the discount
bond interest expense — full
— discount on bounds payable = discount/periods
— cash
calling a bond
bonds payable
loss on early retirement of bonds
— cash
Issuance of par value stock
cash
— common stock — number of shares issues * par value per share
— Additional paid in capital — shares * (market price - oar value)
what type of account is treasury stock
contra equity account
stock dividend declared
retained earninngs
— stock dividend to be distributed
— additional paid in capital
company buys and sells others’ bonds
debt investments
— cash
cash
—debt investments
— gain on sale of debt investments
equity method
share investments – 2nd company’s income * % share of company
— revenue from share investments
cash – dividend * % share of company
— share investments
