Contra accounts are used to reduce the value of the original account directly to keep financial accounting records clean. When accounting for assets, the difference between the asset’s account balance and the contra account balance is referred to as the book value. There are two major methods of determining what should be booked into a contra account.

When the jump button is pressed while crouching on a higher platform, the character will drop down to a lower level. A contra account is an entry on the general ledger with a balance contrary to the normal balance for that categorization (i.e. asset, liability, or equity). And if the player holds the select and start buttons during the credits sequence, a secret message will be displayed after the Konami logo. The power-up icons for the Machine Gun and Laser Gun were also changed and are now represented by letter-based falcon symbols (M and L) used by the other weapons. The Rapid Bullets and Barrier power-ups are also more common in this version, since unlike the arcade game, the flying item capsules now appear regardless of which weapon the player character currently possesses. The NES version introduces a seventh item that clears the screen of all on-screen enemies when obtained.

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When a contra asset account is first recorded in a journal entry, the offset is to an expense. For example, an increase in the form of a credit to allowance for doubtful accounts is also recorded as a debit to increase bad debt expense. Reserve for obsolete inventory is a contra asset account used to write down the inventory account if inventory is considered obsolete.

The cheat remains in effect when the player runs out of lives and uses a continue to retry a stage. Up to two people can play simultaneously, with one player as Bill (the blond-haired commando wearing a white tank top and blue bandana), and the other player as Lance (the shirtless dark-haired commando with a red bandana). Accounts receivable (A/R) has a debit balance, but the allowance for doubtful accounts carries a creditbalance. By keeping the original dollar amount intact in the original account and reducing the figure in a separate account, the financial information is more transparent for financial reporting purposes. For example, if a piece of heavy machinery is purchased for $10,000, that $10,000 figure is maintained on the general ledger even as the asset’s depreciation is recorded separately.

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Contra asset accounts are recorded with a credit balance that decreases the balance of an asset. A key example of contra liabilities includes discounts on notes or bonds payable. Contra accounts are used to reduce the original account directly, keeping financial accounting records clean. The difference between an asset’s balance and the contra account asset balance is the book value.

For example, accumulated depreciation is a contra asset that reduces the value of a company’s fixed assets, resulting in net assets. Contra equity reduces the total number of outstanding shares on the balance sheet. The key example of a contra equity account is Treasury stock, which represents the amount paid to buyback stock.

The controls consists of an eight-way joystick and two action buttons for shooting (left) and jumping (right). When one of the protagonists jumps, he curls into a somersault https://www.quick-bookkeeping.net/is-an-invoice-a-receipt/ instead of doing a conventional jump like in other games. The joystick controls not only the player’s movement while running and jumping, but also his aiming.

The arcade game was released in three versions.[8] The Japanese and American versions are virtually identical, aside from the Japanese version using kanji characters to spell the game’s title. However, the European version, titled Gryzor, only allows two players to play the game alternating rather than simultaneously. The net amount – i.e. standard deduction vs itemized deductions the difference between the account balance post-adjustment of the contra account balance – represents the book value shown on the balance sheet. The game begins with a prologue sequence explaining the game’s backstory, followed by a map of the Galuga archipelago, which is shown at the start of every stage to indicate the player’s progress.

1. And if the player holds the select and start buttons during the credits sequence, a secret message will be displayed after the Konami logo.
2. The controls consists of an eight-way joystick and two action buttons for shooting (left) and jumping (right).
3. The percentage of sales method assumes that the company cannot collect payment for a fixed percentage of goods or services that it has sold.
4. A contra liability is an account in which activity is recorded as a debit balance and is used to decrease the balance of a liability.
5. When accounting for assets, the difference between the asset’s account balance and the contra account balance is referred to as the book value.
6. For this reason, contra accounts are primarily seen as having negative balances because they are used to reduce the balance of another account.

Contra liability, equity, and revenue accounts have natural debit balances. These three types of contra accounts are used to reduce liabilities, equity, and revenue which all have natural credit balances. Therefore, for these three, the debit balance actually represents a negative amount. By reporting contra asset accounts on the balance sheet, users of financial statements can learn more about the assets of a company.

Differences in the US release

Examples of fixed assets include buildings, machinery, office equipment, furniture, vehicles, etc. The accumulated depreciation account appears on the balance sheet and reduces the gross amount of fixed assets. A contra liability is an account in which activity is recorded as a debit balance and is used to decrease the balance of a liability. It is not classified as a liability since it does not represent a future obligation. Normal asset accounts have a debit balance, while contra asset accounts are in a credit balance.

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Offsetting the asset account with its respective contra asset account shows the net balance of that asset. The arcade version of Contra consists of seven stages (the number of stages and level structures vary in later versions). The player must destroy a generator at the other side of each passageway in order to deactivate the electric current preventing access.