FINANCIAL INSTRUMENT (Application Summary)
Reply
Monthly Archives: March 2020
Typical Debits and Credits (Reconstruction of Accounts)
Typical Debits and Credits
|
Cash |
||
| Beginning Balance | Cash purchases of merchandise | |
| Cash Sales of merchandise | Cash purchases of fixed and other assets | |
| Collection of other revenues | Payment of expenses | |
| Proceeds from sales of fixed and other assets | Payments to creditors and other lenders | |
| Sales of corporation’s own stock and bonds for cash | Redemptions or retirements of corporations own stock and bonds | |
| Collections from customers, stock subscribers, and other borrowers | Loans granted to others | |
| Proceeds of loans taken | Payment of cash dividends | |
| Ending Balance | ||
|
Accounts Receivable |
||
| Beginning Balance | Collections from customers to apply on account | |
| Sales of merchandise on account | Discounts granted to customers | |
| Trade notes dishonored by the maker | Receipts of notes from customers as temporary settlement of open accounts | |
| Restatement of previously written off customer’s accounts | Worthless receivables written off | |
| Assignment or sale of customers account | ||
| Ending balance | ||
|
Notes Receivable |
||
| Beginning Balance | Collections from note makers | |
| Sales of merchandise in exchange for notes | Notes dishonored by the makers | |
| Receipts of notes from customers as temporary settlement of open accounts | Ending Balance | |
| Loans granted in exchange for promissory notes | ||
|
Allowance for Doubtful Accounts |
||
| Worthless receivable written off | Beginning balance | |
| Ending Balance | Restatement or recoveries of previously written off accounts | |
| Adjusting entry for the estimated doubtful accounts | ||
|
Land, Building and Equipment |
||
| Beginning Balance | Disposals, retirements and sales | |
| Acquisitions | Ending balance | |
| Additions, betterments and replacements and certain types of capital expenditures | ||
|
Accumulated Depreciation |
||
| Certain types of capital expenditure | Beginning balance | |
| Portion of the balance pertaining to assets disposed, retired or sold | Adjusting entry for depreciation | |
| Ending balance | ||
|
Accounts Payable |
||
| Payments to creditors to apply on account | Beginning Balance | |
| Discounts granted by creditors | Purchases of merchandise on account | |
| issuance of notes to creditors as temporary settlement of open accounts | Purchases of fixed assets, other assets, and services on account | |
| Returns and allowances related to purchase on account | ||
| Ending balance | ||
|
Notes Payable |
||
| Payment to notes payees | Beginning balance | |
| Ending balance | Purchases of merchandise in exchange for notes | |
| Purchases of fixed assets, other assets and services in exchange for notes | ||
| Issuance of notes to creditors as temporary settlement of open accounts | ||
| Loans taken in exchange for promissory notes | ||
|
Share Capital |
||
| Liquidating dividends | Beginning balance | |
| Permanent cancellation of reacquired shares of stock | Issuance of certificate of stock for fully paid subscriptions | |
| Corporation quasi-reorganization by proportionate reduction of the outstanding shares or par value per share | Issuance of certificate of stock in exchange for cash, fixed and other assets | |
| Ending balance | Issuance of certificates as stock dividends | |
|
Share Premium |
||
| Debits from certain share capital transactions | Beginning Balance | |
| Ending Balance | Excess of issue price of share capital over the par value or stated value | |
| Credits from certain capital stock transactions | ||
| Donated Capital | ||
|
Retained Earnings |
||
| Dividends declared | Beginning Balance | |
| Establishment and increases of the appropriations | Reversals and decreases of the appropriations | |
| Net loss for the period | Net income for the period | |
| Debits from certain capital stock transactions | Credits from prior years adjustments | |
| Debits from prior years adjustments | ||
| Ending Balance | ||
|
Sales |
||
| Closing entry at the end of the period | Total Sales (cash or on account | |
|
Purchases |
||
| Total Purchases (cash or on account) | Withdrawal of merchandise, valued at cost, by a proprietor or a partner | |
| Closing entry at the end of the period | ||
|
Revenues |
||
| Reversing entry for the accrued revenue of last period | Reversing entry for the unearned revenues of last period | |
| Adjusting entry for revenues already collected but not yet earned | Revenues collected | |
| Closing entry at the end of the period | Adjusting entry for revenues already earned but not yet collected | |
| Adjusting entry for the earned portion of the revenues collected in advance | ||
|
Expenses |
||
| Reversing entry for the prepaid expenses of last period | Reversing entry for the accrued expenses of last period | |
| Expenses paid | Adjusting entry for expenses already paid but not yet incurred | |
| Adjusting entry for expenses already incurred but not yet paid | Closing entry at the end of the period | |
| Adjusting entry for the used or expired portion of the expenses paid in advance | ||
REIBORN 