During the year, Cheng Company paid salaries of $24,000. In addition, $8,000 in salaries has accrued by the end of the year but has not been paid. The year-end adjusting entry would include:

credit to salaries payable for $8,000

What is an entry to close a revenue account?

revenue
retained earnings

What is an entry to close an expense account?

retained earnings
any expense account

In a bank reconciliation, what is involved on the bank side?

checks outstanding, deposits outstanding, bank errors

with checks outstanding, deposits outstanding, and bank service fees, what is added and subtracted?

(-) checks outstanding
(+) deposits outstanding
(+/-) bank errors

with a bank reconciliation, what is involved on the company side/general ledger?

service fees, interest earned, cash collections by the bank, NSF checks, company errors

The dividends account would be shown only on:

the statement of stockholders equity

how do you calculate retained earnings?

revenues-expenses-dividends
OR
net income – dividends

you rent a building at $1000/month, paying 6 months rent in advance

prepaid rent 6000
cash 6000

provide $50 of services to customers on account

accounts receivable 50
service revenue 50

for a bank reconciliation, what is added and subtracted for the company?

(-) service fees
(+) interest earned
(+) cash collections by the bank
(-) NSF bad checks
(+/-) company errors

how to calculate net revenue

total revenue – any discounts, returns, allowances

balance sheet method