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Journal Entries Analyzing transactions and recording them as journal entries is the first step in the accounting cycle . It begins at the start of an accounting period and continues during the whole period.

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Journal entries are the first step in the accounting cycle and are used to record all business transactions and events in the accounting system. As business events occur throughout the accounting period, journal entries are recorded in the general journal.

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Accounting for Advance Payments For example, a licensing agreement requires a $1,000 advance royalty payment to intellectual property rights owner (licensor) when the licensing agreement is signed.

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2015-9-3 · abnormal gain. Improvement on the accepted or normal level of loss associated with a production activity. It is isolated as a period entry rather than as an adjustment to product cost.

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Periodic inventory accounting involves an increase (debit) to Purchases when acquisitions are made. Remember, “Purchases” is a general ledger (GL) account found in the cost of sales section of the Profit & Loss Statement. At the close of the period, a physical count of the remaining inventory is required to determine the amount unsold.

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