1 PRE-PAYMENTS 2 ACCRUALS

The company pays in advance or Expenses and revenues to be recorded

customer pays in advance for the period though not materialized
yet by cash transactions or bills
1.1 The company pays in advance:
2.1 EXPENSES ACCRUED (expenses to be
PREPAIDS (paid cash for future recorded for the period, that we didn’t
(A) Prepaid (E)Exp. Insurance
business activities): pay, nor did we received bills yet from
xxx xxx
• Insurance suppliers)
•Rent (L) Salaries
•etc. Payable (E)Salaries Exp.
(A) Supplies (E)Exp. Supplies
SUPPLIES xxx xxx
xxx xxx

2.2 REVENUES ACCRUED (Revenues to

(A) Accumulated
Depreciation (E) Deprecation Exp. be recorded for the period, that we
EQUIPMENT,
didn’t bill yet to customer, nor did we
BUILDINGS, etc. xxx xxx
received cash)
(long live assets)
The company received cash in advance: (A) Account
1.2 receivable (R) Revenue sales
(L) Unearned xxx xxx
UNEARNED REVENUES Revenue (R) Revenue sales
(Customer paid cash in xxx xxx
advance for future services or
goods)