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Thank you for all of your help yesterday but I’m still hitting some major walls with understanding this. I thought it may be more helpful if you could help walk me through a scenario. Journal Entries/T-Accounts would be most helpful.
From Intermediate Accounting 3rd edition:
A doctor keeps her books on the cash basis. In 2010, the Dr. received $300,000 from patients and paid $170,000 for operating expenses.
A/R
Jan. 1 – $12,000
Dec. 31 – $9,000
Unearned Revenue
Jan. 1 – $0
Dec. 31 – $4,000
Accrued Liabilities
Jan. 1 – $2,000
Dec. 31 – $5,500
Prepaid Expenses
Jan. 1 – $1,800
Dec. 31 – $2,700
So, aside from the obvious 4 step equation that will get me there. I really feel that things will begin clicking for me if I can see the actual journal entries / T-Accounts that will get us to the accrual number, and why.
Please help. I’ve wasted way too much precious study time on this and need to get past it.
Thank you in advance.
"If you're going through hell, keep going"
- Winston Churchill"I've missed over 9,000 shots in my career. I've lost over 300 games. 26 times I've been trusted to take the game winning shot, and missed. I've failed, over and over and over again in my life. And that is why, I succeed."
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AUD: 78
REG: (74), 91
FAR: (71)
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