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COB 241

COB 241. September 6, 2019. Already Mastered?. FINISH OUT CHAPTERS 1 AND 2. Adjusting Entries. Accruals. Expenses not yet billed Sales not yet billed Accrued Salaries and Wages Accrued Interest. Revenue and expenses that are RECOGNIZED BEFORE t he cash changes hands. Deferrals.

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COB 241

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  1. COB 241 September 6, 2019

  2. Already Mastered? FINISH OUT CHAPTERS 1 AND 2

  3. Adjusting Entries Accruals Expenses not yet billed Sales not yet billed Accrued Salaries and Wages Accrued Interest Revenue and expenses that are RECOGNIZED BEFORE the cash changes hands. Deferrals Supplies Revenue and expenses which are RECOGNIZED AFTER the cash changes hands.

  4. EVENT 1: The company purchases $34,000 of supplies on account.

  5. EVENT 2: the company purchases another $12,000 in supplies for cash.

  6. EVENT 3: At the end of the month, the company takes a physical count of supplies inventory, and discovers that only $10,000 in supplies remain. Thus, $36,000 were used.

  7. Adjusting Entries Accruals Expenses not yet billed Sales not yet billed Accrued Salaries and Wages Accrued Interest Revenue and expenses that are RECOGNIZED BEFORE the cash changes hands. Deferrals Supplies Prepaids Revenue and expenses which are RECOGNIZED AFTER the cash changes hands.

  8. EVENT 4: The company purchases insurance, and pays a six-month premium of $60,000.

  9. EVENT 5: At the end of the month, the company has used one of the six months’ worth of insurance, or $10,000.

  10. Adjusting Entries Accruals Expenses not yet billed Sales not yet billed Accrued Salaries and Wages Accrued Interest Revenue and expenses that are RECOGNIZED BEFORE the cash changes hands. Deferrals Supplies Prepaids Unearned Revenue Revenue and expenses which are RECOGNIZED AFTER the cash changes hands.

  11. EVENT 6: The company receives $45,000 cash from a customer for work to be done in a future period.

  12. EVENT 7: When the company actually performs the work, revenue is recognized, and the obligation is fulfilled.

  13. Adjusting Entries Accruals Expenses not yet billed Sales not yet billed Accrued Salaries and Wages Accrued Interest Revenue and expenses that are RECOGNIZED BEFORE the cash changes hands. Deferrals Supplies Prepaids Unearned Revenue Depreciation Revenue and expenses which are RECOGNIZED AFTER the cash changes hands.

  14. EVENT: Company purchases heavy equipment for $750,000

  15. EVENT: At end of first period, company recognizes $60,000 in depreciation.

  16. EVENT: Because we have a loan that carries interest, we have to accrue interest expense.

  17. Adjusting Entries Accruals Expenses not yet billed Sales not yet billed Accrued Salaries and Wages Accrued Interest Revenue and expenses that are RECOGNIZED BEFORE the cash changes hands. Deferrals Supplies Prepaids Unearned Revenue Depreciation Revenue and expenses which are RECOGNIZED AFTER the cash changes hands.

  18. EVENT 8: Employees work the final few days of the period, but are to be paid in the next period. $23,000

  19. EVENT 9: Employees are paid in the next period for work from the previous period. $23,000

  20. Homework Assignment 5 INDIVIDUAL WORK • Questions and Exercises from the Book • Comprehensive Problem – all five units GROUP WORK • Compare answers, discuss, reconcile differences!

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