Holly Henderson
ACT 202: Intermediate Accounting II
Project: Part 2
Professor: Dr. Michael Miller
February 10, 2019
1. Investing Capital
Cash XX
Owner’s Equity XX
2. For Loans
Cash XX
Accounts Payable XX
3. To Pay Loans
Accounts Payable XX
Interest Expense XX
Cash XX
4. To buy Equipment
Equipment XX
Cash XX
5. To Extend Credit
Accounts Receivable XX
Cash XX
Adjusting Entries
The main adjusting entries I would use are:
1. Depreciation and Amortization – for PP&E and other depreciable items.
2. An Allowance for Doubtful Accounts for my Accounts Receivable.
3. Accrued Expenses
4. Prepaid Expenses
5. To adjust cash balances for reconciling items in a bank reconciliation.
Account Debit Credit
Depreciation Expense XX
Accumulated Depreciation XX
Bad Debts Expense XX
Allowance for Doubtful Accounts XX
