MGAB01H3 Study Guide - Midterm Guide: Soo Line Railroad, Accrual, Photocopier
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MGAB01H3 Full Course Notes
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Document Summary
Balance sheet accounts; balance carries forward to next period. Assets (cash, ar, inv, prepaid insurance, land, ppe); liabilities (ap, ip, loans); se (cs, re) Revenue (sales), expenses (cogs, insurance expense, interest expense, amortization expense), gains, Purpose of closing entries: transfer net income (or loss) to re, establish a 0 balance in each of the temporary accounts to start the next accounting period. Close revenue accounts by transferring to income summary (dr revenue, cr income summary) Close expense accounts by transferring to income summary (cr expenses, dr income summary) Close income summary by transferring to re (dr income summary, cr re) Close div declared by transferring to re (cr div declared, dr re) Accruals revenues earned or expenses incurred that have not previously been recorded. Deferrals cash recipts or payments in advance of revenue or expense recognition. Depreciation: you own a photocopier, and purchased it at ,000 on jan. 1.
