adjusting entries
Prepare an adjusting entry to record insurance expense for June, if you paid $18,000 for the whole year up-front.
Dr. insurance expense $1,500
Cr. Prepaid insurance $1,500
Close $3,000 rent expense
Dr income summary $3,000
Cr rent expense $3,000
What is on the balance sheet and income statement?
I/S: rev-exp=NI
B/S: A=L+OE
$12,000 equipment is depreciated over 60 months. Depreciate one month of equipment
Dr Depreciation expense $200
Cr accumulated depreciation $200
Close $13,000 dividends
Dr retained earnings $13,000
Cr dividends $13,000
What order are assets in on the balance sheet?
In order of liquidity
Workers are paid $400 for a day’s worth of work. Workers only work Monday-Friday. They are paid every Friday. The period ended on a Tuesday. Record the expense accrued and the payment of wages (for one worker).
Dr wages expense $800
Cr wages payable $800
Dr wages payable $800
Dr wages expense$1,200
Cr cash $2,000
Close income summary. Balanced are: dr $70,000. Cr $56,000
Dr retained earnings $14,000
Cr income summary $14,000
In what order do you prepare financial statements and why?
Income stmnt -> retained earnings -> balance sheet. NI goes on stmnt of retained earnings; retained earnings goes on balance sheet