Business Administration 2257 Study Guide - Midterm Guide: Cash Cash, Arkansas Highway 9, Current Liability
3 Apr 2020
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A/r: -haven"t rec"d payments or, rec"d payment but not early enough for discount; don"t know how much is a/r or cash; put in a/r and adjust later. Cash: -payment rec"d from credit sales, cash sales, debit/ credit card sales. Dr sales discounts, dr cash, dr a/r, cr sales revenue for the full amnt of those 3: pay off last year"s liabilities (for ex), dr salaries payable, cr cash. Look at last year"s balance sheet: for all current liabilities (except for current bank loan), make them 0 (dr all current liabilities, cr cash: a/r to n/r, discounts, r&a, write-offs, re-instating: If receiving simple payment: dr cash, cr a/r. Converting a/r to n/r to add note dr n/r, cr a/r. Account 4 interest when you get it. When rec"d/ paid dr cash, cr n/r, cr interest revenue (principal x % x n/360) *if n/r started last year, also cr interest rec. (for last yr) Not paid dr interest rec, cr interest revenue.
