$92‚000 (5) $28‚000 Bal. $1‚218‚000 Allowance for Doubtful Accounts (4) $92‚000 Bal. $78‚000 (5) $28‚000 Bal. $14‚000 (c) Prepare the journal
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CASE STUDY #2 – DARDEN RESTAURANTS‚ INC. – TRANSACTIONS AND ADJUSTMENTS Concepts a. To prepare accrual-based financial statements‚ a company must adjust its accounts. This is accomplished with periodic adjustments (also known as adjusting journal entries or accounting adjustments). For each account below‚ explain the types of transactions or events that necessitate periodic adjustments to the account for the typical company. i. “Inventories‚ net.” – If a company purchases products to be resold
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called the credit side. We record transactions first in a journal. Then we post (copy the data) to the ledger. It is helpful to list all the accounts with their balances on a trial balance.” (10 min.) S 2-3 J 1. Capital A. Record of transactions C 2. Debit B. An asset F 3. Expense C. Left side of an account H 4. Net income D Side of an account where increases are recorded I 5. Ledger E. Copying data from the journal to the ledger E 6. Posting F. Using up assets
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was no professional accountant but his translation proved to be most influential in improving accounting practice and in spreading the idea of double-entry in schools as well as in private Japanese companies beyond the banking sector. Finally‚ Naotaro Shimono [1866–1939] introduced his Boki seiri (Shimono 1895/1982)‚ an authentic Japanese text of double-entry accounting. For details about early Japanese cost accounting applications‚ we referred in section 2.7 to Kimizuka (1991). Japanese accounting
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series of procedures in collection‚ processing‚ and communication of financial information. There are 7 basis steps of accounting cycle which comprise of source documents‚ prima entry‚ ledger‚ draft trial balances & financial statement‚ adjustments‚ adjusted trial balance & financial statement and closing entries. At first source documents‚ are things like invoice‚ credit note‚ debit note‚ cash bill‚ payment voucher‚ official receipt‚ cheque counterfoil and memo. All this document
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+0)26-4 Accounting Theory NEED FOR ACCOUNTING Business is one of the sources of earning income. Whenever a business is started‚ it requires investment of certain amount which is called as capital. With this amount of capital the businessman may deal either with trading business or manufacturing business. In a trading business‚ he will buy goods at a lesser price and sells the same to others at a higher price. In case of manufacturing business‚ he has to buy raw materials and incur other
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when purchased‚ which accounts should be debited and which credited at the end of the period in order to reflect the amount of supplies on hand? Exercise 4.1 – Identifying adjusting journal entries Required: Match the end-of-financial-year adjustments (for each independent situation) to the appropriate journal entry. Adjustments 1. Insurance expense which has not been used up (there is still future cover) 2. Portion of recognized revenue which is considered unearned 3. Revenue received in
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the account names and account numbers of the business. A ledger‚ though‚ provides more detail. It includes the increases and decreases of each account for a specific period and the balance of each account at a specific point in time. 4. With a double-entry you need to record the dual effects of each transaction. Every transaction affects at least two accounts. 5. A T-account is a shortened form of each account in the ledger. The debit is on the left side‚ credit on the right side‚ and the account
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HW 8 – 1 ACCOUNTS RECEIVABLE JOURNAL ENTRIES Prepare journal entries to record the following transactions: (1) On December 15‚ 2008‚ the company recorded $150‚000 sales on credit. (2) On December 31‚ 2008‚ the company estimated bad debt expenses of $15‚000. (3) On January 12‚ 2009‚ collect $100‚000 worth of accounts receivable. (4) After many collection attempts‚ the Company determined on June 15‚ 2009 that it would not collect $10‚000 in accounts receivables from Pendant Publishing
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of either Manual accounting System or the Computerized System. Historically‚ accounting was a manual process where in the well known father of Accounting‚ Luca Pacioli‚ developed the double entry bookkeeping system in 1494 using debits and credits to manage company. The manual process uses paper ledgers and journals where accountants records financial information. Information’s where carefully entered into physical books requiring accountants to spend copious amounts of time mathematically checking
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