101018 Lecture Note
31) Unearned revenues: rent, airline tickets, magazine subscriptions, customer deposits
To order an airplane, it is required to give money beforehand since it’s so costly
34) Accruals are basically estimation
Either delivering or consuming something
Have to recognize either an expense of a revenue
39) Providing services for the last three months
Keep providing in general but closing today (December 1)
Need to estimate
Account receivable to service revenue
40) We need to run a journal entry
Adjusting entry (need to provoke it)
45) Obligations in borrowing
Pay back the principle
In addition, need to pay interest like paying 10% interest every year for example
Interest is not to be paid until the end of the contract
47) Salaries and wages payable
*49) pre-paid expense (pay full in insurance expense)
debiting insurance crediting cash
