1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 21-1 Accrued Revenue

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 21-1 ANALYZING AN ADJUSTMENT FOR ACCRUED INTEREST INCOME 1 2 page 617 3 1.Debit Interest Receivable. 2.Credit Interest Income. 3.Record the adjusting entry.

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 21-1 2. Post the credit. POSTING AN ADJUSTING ENTRY FOR ACCRUED INTEREST INCOME page 618 1 2 1. Post the debit.

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 21-1 REVERSING ENTRY FOR ACCRUED INTEREST INCOME 12 3 page 619 1.Write the heading. 2.Debit Interest Income. 3.Credit Interest Receivable.

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 21-1 COLLECTING A NOTE RECEIVABLE ISSUED IN A PREVIOUS FISCAL PERIOD 2 page 620 January 30. Received cash for the maturity value of a 90-day, 6% note: principal, $2,000.00, plus interest, $30.00; total, $2,030.00. Receipt No. 9. 3.Debit for the maturity value. 1.Credit for the principal of the note. 2.Credit for the total interest. 4.Post the amounts in the General columns. 13 4 4

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 21-1 TERMS REVIEW accrued revenue intellectual property accrued interest income reversing entry page 621

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 21-2 Accrued Expenses

8. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 21-2 ANALYZING AN ADJUSTMENT FOR ACCRUED INTEREST EXPENSE page 622 1 2 3 2.Credit Interest Payable. 1.Debit Interest Expense. 3.Record the adjusting entry.

9. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 9 LESSON 21-2 POSTING AN ADJUSTING ENTRY FOR ACCRUED INTEREST EXPENSE page 623 1 2 2.Post the credit. 1.Post the debit.

10. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 10 LESSON 21-2 REVERSING ENTRY FOR ACCRUED INTEREST EXPENSE 1 2 page 624 1.Debit Interest Payable. 2.Credit Interest Expense.

11. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 11 LESSON 21-2 PAYING A NOTE PAYABLE SIGNED IN A PREVIOUS FISCAL PERIOD 1 2 3 4 4 page 625 March 1. Paid cash for maturity value of the September 2 note: principal, $10,000.00, plus interest, $600.00; total, $10,600.00. Check No. 916. 1.Debit for the principal of the note. 2.Debit for the total interest. 3.Credit for the maturity value of the note. 4.Post the amounts in the General columns.

12. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 12 LESSON 21-2 TERMS REVIEW accrued expenses accrued interest expense page 627

13. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Adjusting, Closing, and Reversing Entries Adjusting Entries Last day of fiscal period December 31 Closing Entries Last day of fiscal period December 31 Reversing Entries First day of new fiscal period January 1 13 LESSON 21-1