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3 2017 Week 6 AMD Ch3 Accrual Adjusting Entries V2
3 2017 Week 6 AMD Ch3 Accrual Adjusting Entries V2
3 2017 Week 6 AMD Ch3 Accrual Adjusting Entries V2
Accruals:
1. Accrued revenues: Amounts not yet received
and recorded for which goods or services have
been provided.
2. Accrued expenses: Amounts not yet paid or
recorded for goods or services already received.
Adjusting entries for accruals
• Example:
– Commission Revenue earned, but not yet received
or recorded – $200.
– Journal entry:
– General Ledger:
Adjusting entries for accruals
– Journal entry:
– General Ledger:
Adjusting entries for accruals
2. Accrued Salaries:
– Salaries outstanding for October:
• $1200 (3 days x $400)
Adjusting entries for accruals
– Journal entry:
– General Ledger:
Summary of basic relationships