NOTE3 Simple Adjustment Financial account 财务会计 知识讲稿.ppt

Adjusting for Depreciation On January 1, 2004, Barton, Inc. purchased equipment for $62,000 cash. The equipment has an estimated useful life of 5 years and Barton expects to sell the equipment at the end of its life for $2,000 cash. Let’s record depreciation expense for the year ended December 31, 2004. 2004 Depreciation Expense = $62,000 - $2,000 5 = $12,000 Adjusting for Depreciation On January 1, 2004, Barton, Inc. purchased equipment for $62,000 cash. The equipment has an estimated useful life of 5 years and Barton expects to sell the equipment at the end of its life for $2,000 cash. Let’s record depreciation expense for the year ended December 31, 2004. Accumulated depreciation is a contra asset account. Equipment Depreciation Expense 1/1 62,000 12/31 12,000 Accumulated Depreciation 12/31 12,000 Adjusting for Depreciation Adjusting for Depreciation Equipment is shown net of accumulated depreciation. $ Buy your season tickets for all home basketball games NOW! “Go Big Blue” Adjusting Unearned (Deferred) Revenues Cash received in advance of providing products or services. Liability Revenue Unadjusted Balance Credit Adjustment Debit Adjustment Adjusting Unearned (Deferred) Revenues On October 1, 2004, Ox University sold 1,000 season tickets to its 20 home basketball games for $100 each. Ox University makes the following entry: Adjusting Unearned (Deferred) Revenues On December 31, Ox University has played 10 of its regular home games, winning 2 and losing 8. We’re about one-half done with this job and want to be paid forour work! Costs incurred in a period that are both unpaid and unrecorded. Adjusting for Accrued Expenses Expense Liability Credit Adjustment Debit Adjustment 1/12/04 31/12/04 Year end Last pay date 26/12/04 Next pay date 2/1/05 Record adjusting journal entry. Adjusting for Accrued Expenses Barton, Inc. pays its employees every Friday. Year-end, 31/12/04, falls on a Wednesday. As of 31/12/04, the employees have earned salaries of $47,