ACCOUNTING CYCLE

1. BP SALES ON ACCOUNT 100,000 CORRECT

2. JOURNALIZING (GEN. AR 100,000
JOURNAL) SALES 100,000 CORRECT
3. POSTING AR 100,000

SALES 100,000 CORRECT

4. TB AR 100,000

SALES 100,000 CORRECT

5. WORKSHEET AR 100,000

SALES 100,000 CORRECT

6. FS AR 100,000

SALES 100,000 CORRECT

7. RECORDING AND POSTING AR 100,000
(GEN. JOURNAL)
SALES 100,000 CORRECT
8. CLOSING (GEN. JOURNAL) SALES 100,000
9. PC -TB AR 100,000
10. REVERSING (GEN .JOURNAL) INT PAY 10,000
INT. EXP 10,000
ACCRUED EXPENSE
11/1/2021 CASH 100,000 CASH 100,000
NP 100,000 NP 100,000
12/31/2021 INT. EXP 2,000
7. AJE INT. PAYABLE 2,000
8. CLOSING REVENUES XXXX
INT. EXP 2,000
EXPENSES XXXX
I&ES XXXX

9. REVERSING INT . PAY 2,000 RE 1/1/2022 2,000

1/1/2022 INT. EXP 2,000 INT. EXP 2,000

Accrued Expense - incurred, not yet paid , not yet recorded

MD
100,000 12/31/21 105,000
11/1/21 -----------------------------------------------------------------------------------------------4/1/22
INT. EXP 2,000 3,000
100,000 X 12% X 5/12 = 5,000 INT.EXP
Interest payable
Interest expense
2,000 2,000 2,000 2,000
1/1/2022 0 2,000 KAKAMPI 0
5,000

INT. EXP 2,000

RE 2,000
ACCRUED INCOME - INCOME EARNED, NOT COLLECTED, NOT RECORDED

100,000 12/31/21 105,000

11/1/21 -----------------------------------------------------------------------------------------------4/1/22
INT. INC 2,000 3,000
100,000 X 12% X 5/12 = 5,000 INT.INC

ACCRUED INCOME
11/1/2021 NR 100,000 NR 100,000
CASH 100,000 CASH 100,000
12/31/2021 7. AJE INT. REC. 2,000
INT.INC 2,000
8.CLOSING REVENUES XXXX
INT. INC 2,000
EXPENSES XXXX
I&ES XXXX

1/1/2022 10. REVERSING INT. INC 2,000 INT. INC 2,000

INT.REC 2,000 RE 2,000
4/1/2022 MATURITY CASH 105,000
NR 100,000
INT. INC. 5,000

RE. 2,000
INT.INC 2,000

Interest receivable Interest income

2,000 2,000 2,000 2,000
KAKAMPI 2,000 0
5,000 1/1/2022
 12/31/2021
10/1/2021 ---------------------------------------------------------------------------------------------------3/1/2022
RENT EXP 30,000 PREP. RENT 20,000

PREPAID EXPENSE
ASSET METHOD EXPENSE METHOD
PREP RENT 50,000 PREP RENT 50,000 RENT EXP 50,000 RENT EXP 50,000
CASH 50,000 CASH 50,000 CASH 50,000 CASH 50,000
RENT EXP 30,000 PREP RENT 20,000
PREP. RENT 30,000 RENT EXP 20,000
REVENUES XXXX REVENUES XXXX
RENT EXP 30,000 RENT EXP 30,000
EXPENSES XXXX EXPENSES XXXX
I&ES XXXX I&ES XXXX

RE 30,000 NO ENTRY RENT EXP 20,000 RENT EXP 20,000

PREP. RENT 30,000 PREP RENT 20,000 RE 20,000

RE 30,000
PREP. RENT 30,000

ASSET METHOD EXPENSE METHOD

PRERPAID RENT RENT EXPENSE RENT EXPENSE PREPAID RENT
50,000 30,000 30,000 50,000 20,000 20,000
20,000 30,000 30,000 30,000 30,000 20,000 20,000
0 0 0
20,000

UNEARNED INCOME
LIABILITY METHOD INCOME METHOD
CASH 50,000 CASH 50,000 CASH 50,000 CASH 50,000
UN RENT 50,000 UN RENT 50,000 RENT INC 50,000 RENT INC 50,000
UN RENT 30,000 RENT INC 20,000
RENT INC 30,000 UN RENT 20,000
REVENUES XXXX REVENUES XXXX
RENT INC 30,000 RENT INC 30,000
EXPENSES XXXX EXPENSES XXXX
I&ES XXXX I&ES XXXX

UN RENT 30,000 NO ENTRY UN RENT 20,000 RE 20,000

RE 30,000 RENT INC 20,000 RENT INC 20,0000

UN RENT 30,000
RE 30,000

Liability method Income method

Unearned rent Rent income Unearned rent Rent income
30,000 50,000 30,000 20,000 20,000 50,000
20,000 30,000 30,000 20,000 20,000 30,000 30,000
 0 0
20,000

BAD DEBTS EXPENSE (IMPAIRMENT LOSS)

DWOM (SEGURISTA) AM (KABADO)
DOUBTFUL
WORTHLESS
RECOVERED
COLLECTED