Business Administration 2257 Study Guide - Midterm Guide: Book Value, Retained Earnings, Asset
25 Oct 2015
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Closing entries : note: if there is a net loss, skip steps 3 and 4. C1 close revenues(revenues sales disc& sales ret&allw) to income summary. C3 subtotal income summary, calculate and record taxes. C4 close income tax expense to income summary. Step 1: reinstate account: dr. accounts receivable, cr. Step 2: record receipt of cash: dr. cash, cr. Net sales = gross sales discounts r&as. Sales revenue circle items that are not checked off. Dr. a/r ( note amt +int (& regular write-off) Value the e/b in units: look out for orders in transit that we have ownership of. Bank reconciliation: go to last month"s bank rec, check off any late deposits and outstanding cheques. That appear on this month"s statement: circle those not listed on this month"s bank statement, go to cash disbursments list (cheques register , check off each cheque as it appears on this month"s. On cash disbrs and on last month"s bank rec)
