Question
help explaining and providing examples of this cases of Accrual Methods: By applying the ACCRUAL METHOD OF ACCOUNTING, know how to JOURNALIZE any ADJUSTING ENTRY
help explaining and providing examples of this cases of Accrual Methods:
By applying the ACCRUAL METHOD OF ACCOUNTING, know how to JOURNALIZE any ADJUSTING ENTRY transaction including how to properly COMPUTE AMOUNTS that are a part of an adjusting entry (i.e., know how to adjust prepaid expenses, accrued revenues, accrued expenses, unearned revenues). For example, an incomplete list of things you should know include: o know how to calculate and journalize ACCRUED INTEREST EXPENSE and INTEREST PAYABLE of a note, o know how to compute and journalize ACCRUED ACCOUNTS RECEIVABLE and SERVICE REVENUES for services provided but not yet billed, o know how to compute and journalize DEPRECIATION EXPENSE and ACCUMULATED DEPRECIATION of a plant asset using the STRAIGHT-LINE METHOD (Cost less Salvage Value = Depreciable Base Divided by Estimated Useful Life = Annual Depreciation Expense), o know how to prorate a full year of depreciation expense to reflect that portion of the year in which the asset has been in service, o know how to compute and journalize the amount of a PREPAID INSURANCE (RENT) EXPENSE and INSURANCE (RENT) EXPENSE that has expired, o know how to compute and journalize the amount of SALARIES EXPENSE and SALARIES PAYABLE that are owed but not yet paid as of a date certain, and o know how to compute and journalize the amount of UNEARNED REVENUES and SERVICE REVENUES that have been earned as of a date certain.
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