![[object Object],What do you think? Wendy’s earns revenue by selling meals. Can you think of at least six examples of expenses that a Wendy’s restaurant might have?](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
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Chapter 5 transactions that affect revenue, expenses, and
- 1. Chapter 5
- 3. Section 1
- 7. Supplies Debit Credit End. Bal. 875 Supplies Debit Credit Beg. Bal. 875 Beginning of Next Accounting Period
- 8. Owner’s Capital Account Debit Credit _ + Decrease Increase Side Side Normal Balance
- 19. Section 2
- 24. Account Name Debit Balance Credit Balances 101 Cash in Bank $21,125 105 Accounts Receivables-City News 1,450 110 Accounts Receivables-Green Company 115 Computer Equipment 3000 120 Office Equipment 200 125 Delivery Equipment 12000 201 Accounts Payable – Beacon Advertising 75 205 Accounts Payable – North Shore Auto 11650 301 Maria Sanchez, Capital 25,400 302 Maria Sanchez, withdrawal 500 303 Income Summary 401 Delivery Revenue 2,650 501 Advertising Expense 75 505 Maintenance 600 510 Rent Expense 700 515 Utilities Expense 125 $39,775 $39,775
Hinweis der Redaktion
- The proper handling of transactions that affect temporary and permanent accounts is essential to maintaining accurate financial records.
- Revenues, expenses, and withdrawals accounts are used to collect information for a single accounting period. Temporary capital accounts start each accounting period with a zero balance.
- Permanent accounts are continuous from one accounting period to the next. In permanent accounts, the dollar balances at the end of one period becomes the dollar balance for the4 beginning of the next accounting period. Permanent accounts show balances on hand or amount owed at anytime, they also show the day-to-day changes in assets, liabilities and owner’s capital.
- The rules of debit and credit for accounts classified as revenue, expense, and withdrawals accounts are related to the rules for the owner’s equity account.
- You need to analyze revenue, expense, and owner’s withdrawal transactions to record them correctly.
- Revenue should be recognized on the date earned, even if cash has not been received//
- In the double-entry accounting system, correct analysis and recording of transactions should result in total debits equal to total credits. To test for the equality of debits and credits, follow these steps: Make a list of the account titles used by the business To the right of each account title, list the balance of the account. Use two columns, one for debit balances and the other for credit balances. Add the amounts in each column. If you have recorded everything correctly, the accounts will balance.