Prepare a reversing entry for Craig's Design and Landscaping. (Craig's Design receives a $500 bill for legal
Question:
Prepare a reversing entry for Craig's Design and Landscaping. (Craig's Design receives a $500 bill for legal services performed in the prior month. The bill is dated in the current month.) 1. Click on the navigation bar. 2. Select Journal Entry . 3. Enter the last day of last month in the Journal Date field. 4. In the first row, select Lawyer in the ACCOUNT field. a. Make a note of the parent account for Lawyer . 5. Enter "500" in the DEBITS column. 6. In the second row select Add new in the ACCOUNT column. 7. Select Other Current Liabilities as the account type ( Save account under field). 8. Select Other Current Liabilities as the detail type ( Tax form section field). 9. Enter "Accrued Expenses" in the Name field. 10. Click Save and close . You will be back on the journal entry form. 11. Enter "500" in the CREDITS field. 12. Click Save . a. Click Yes if you get a message about missing classes . 13. Click Reverse . 14. The reversing entry will be displayed. a. Make a note of the journal entry date for the reversing entry. 15. Click Save and close.
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella