FAR-the order of journal entries, how do we know which account to put first?

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May 6, 2012 at 5:10 pm #170347

shellgirl
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Becker software graded me wrong for this J/E

My Answer

Making the lease payment on 12/31/Year 4

DR-Capital finance lease liability $15,000

DR-Interest Expense $85,000

CR-Cash $100,000

vs Becker’s answer

DR-Interest Expense $85,000

DR-Capital finance lease liability $15,000

CR-Cash $100,000

All I did was switching the interest expense and liability account,what’s gonna happen if this happens on the actual exam? Also, do we have to fill out each cell or can we leave it blank for zeros??

CPA CLASS OF 2012!

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May 6, 2012 at 5:50 pm #342881

Anonymous
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Someone posted on another thread that they asked their Becker instructor this question and he said it didn't matter. I was very glad to hear that!
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