| Jan 9 | Salaries payable | 210 | |
| Jan 9 | Salaries expense | 490 | |
| Cash | 700 | ||
| Payday: 3 accrued days plus 7 January days. | |||
| Jan 10 | Cash | 2,700 | |
| Accounts receivable | 1,800 | ||
| Consulting revenue | 900 | ||
| Collected the 30-day contract: 20 accrued days plus 10 January days. | |||
On January 9, FastForward pays the employee $700. Three of those days were already recorded as a payable on December 31 — the entry above splits the check: $210 clears the payable, $490 is January's own expense. January 10 works the same way in reverse: the $2,700 collected clears the $1,800 receivable, and the remaining $900 is January's revenue. Accruals are deferrals run backward — recorded first, settled in cash later.
deserves a second look. Equipment cost $26,000 and should last 48 months with an $8,000 salvage value, so is $375 a month. The credit never reduces Equipment — it goes to , a contra account, so the original cost stays visible and is cost minus what has accumulated.
Equipment, buildings, and vehicles are : long-term tangible assets used to produce and sell. Land is a plant asset that is never depreciated. Useful life and salvage value are estimates made at purchase; if they turn out wrong, the remaining cost is spread over the remaining life going forward, not corrected retroactively.