By Elizabeth A Minbiole
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CliffsQuickReview direction courses disguise the necessities of your hardest periods. Get an organization grip on middle suggestions and key fabric, and try your newfound wisdom with overview questions. CliffsQuickReview Accounting ideas I is your logical, easy-to-grasp advisor to knowing the language of industrial.
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Extra info for Accounting Principles I (Cliffs Quick Review)
1. i. iT•. ' ~i . '•i . T~, ACCOUNTING PRINCIPLES I ANALYZING AN D RECORDING TRANSACTIONS Transaction 4 : On April 5, Mr . Green purchases $30 worth of gaso line to power the mowers during April . Since the gas is a cost o f doing business during the present accounting period, an expens e account (gas expense) increases and is debited for $30 . ) In addition, an asset account (cash) decreases and is credite d for $30. General Journal GJ 1 Gas Expense 51 0 Date Explanation 20X2 ---- --------------Apr_ 5 Gas for lawnmowers _ Ref.
Debit GJ2 ____ 22 0 Credit _ _ _79 Balance _ _ _ 79 CLIFFS QUICK REVIE W ADJUSTMENTS AND FINANCIA L STATEMENTS Adjustment C : Mr. Green's part-time employee earns $80 during the last four days of April but will not be paid until May 10. Thi s requires an adjusting entry that increases (debits) wages expense for $80 and that increases (credits) wages payable for $80 . General Journal GJ 2 Date Account Title and Description Ref. _ _ _ 30_ Wages Expense Wages Payable Accrue wages 4-27 to 4-3 0 Debit 500 210 Credi t 80 80 500 Wages Expense Date Ref .
Y. •M• T •4. ,' . •y: ~ •rir• : GJ2 _ _ _ _ _ _ _ _ _ _50 _ A105 CLIFFS QUICK REVIEW Transaction 13 : On April 30, five of the eight previously billed customers each pay $50 . Therefore, one asset account (cash) increase s and is debited for $250, and another asset account (accounts receivable) decreases and is credited for $250 . General Journal GJ 2 Date Account Title and Description Ref. Debit Credi t Cash Date Explanation Ref. ~. tii. -~;:~. ~ ;F; !.!. •i . :•;•i;~1~~. , ~ ;~, ' ' . I . •I• .