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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 21-1LESSON 21-1
Accrued Revenue
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 21-1
ANALYZING AN ADJUSTMENT FOR ANALYZING AN ADJUSTMENT FOR ACCRUED INTEREST INCOMEACCRUED INTEREST INCOME
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page 617
33 1. Debit Interest Receivable.
2. Credit Interest Income.
3. Record the adjusting entry.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 21-1
2. Post the credit.
POSTING AN ADJUSTING ENTRY FOR POSTING AN ADJUSTING ENTRY FOR ACCRUED INTEREST INCOMEACCRUED INTEREST INCOME page 618
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1. Post the debit.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 21-1
REVERSING ENTRY FOR ACCRUED REVERSING ENTRY FOR ACCRUED INTEREST INCOMEINTEREST INCOME
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page 619
1. Write the heading.
2. Debit Interest Income.
3. Credit Interest Receivable.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 21-1
COLLECTING A NOTE RECEIVABLE COLLECTING A NOTE RECEIVABLE ISSUED IN A PREVIOUS FISCAL PERIODISSUED IN A PREVIOUS FISCAL PERIOD
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page 620
January 30. Received cash for the maturity value of a 90-day, 6% note: principal, $2,000.00, plus interest, $30.00; total, $2,030.00. Receipt No. 9.
3. Debit for the maturity value.
1. Credit for the principal of the note.
2. Credit for the total interest.
4. Post the amounts in the General columns.
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 21-1
TERMS REVIEWTERMS REVIEW
accrued revenue intellectual property accrued interest income reversing entry
page 621
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 21-2LESSON 21-2
Accrued Expenses
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 21-2
ANALYZING AN ADJUSTMENT FOR ANALYZING AN ADJUSTMENT FOR ACCRUED INTEREST EXPENSEACCRUED INTEREST EXPENSE page 622
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2. Credit Interest Payable.
1. Debit Interest Expense.
3. Record the adjusting entry.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 21-2
POSTING AN ADJUSTING ENTRY FOR POSTING AN ADJUSTING ENTRY FOR ACCRUED INTEREST EXPENSEACCRUED INTEREST EXPENSE page 623
1122
2. Post the credit.
1. Post the debit.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 21-2
REVERSING ENTRY FOR ACCRUED REVERSING ENTRY FOR ACCRUED INTEREST EXPENSEINTEREST EXPENSE
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page 624
1. Debit Interest Payable.
2. Credit Interest Expense.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 21-2
PAYING A NOTE PAYABLE SIGNED IN A PAYING A NOTE PAYABLE SIGNED IN A PREVIOUS FISCAL PERIODPREVIOUS FISCAL PERIOD
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page 625
March 1. Paid cash for maturity value of the September 2 note: principal, $10,000.00, plus interest, $600.00; total, $10,600.00. Check No. 916.
1. Debit for the principal of the note.
2. Debit for the total interest.
3. Credit for the maturity value of the note.
4. Post the amounts in the General columns.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 21-2
TERMS REVIEWTERMS REVIEW
accrued expenses accrued interest expense
page 627
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Adjusting, Closing, and Reversing EntriesAdjusting, Closing, and Reversing Entries
Adjusting Entries Last day of fiscal period December 31
Closing Entries Last day of fiscal period December 31
Reversing Entries First day of new fiscal period January 1
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LESSON 21-1
