Worksheet
Which accounts flow over to the Income Statment
Revenue and Expense
Supplies of $500 were bought during the year. The adjusting entry is $300 of expense. What is the balance after the entry.
$200
This is the account number that Accumulated Depreciation would have.
1xx
How long a fixed asset may last
Useful Life
These accounts flow over to the balance sheet
Assets, Liabilities, and Owner's Equity
Besides Insurance, companies may prepay for these.
Software subscriptions
Property, Plant, Equipment are also know as this.
Fixed Assets
You do this with salvage value
Subtract
The is the order/direction you complete the worksheet.
Left to Right
This is the j/e for Supplies
Dr Supply Expense
Cr Supplies
You do this with an additional costs related to a fixed asset.
Add them!
Accumulated Depreciation is know as this type of account.
Contra - Asset
These two sections at first will not balance
I.S. and B.S.
This is the j/e for wages.
Dr Wage Expense
Cr Wage Payable
Which value would show up on the balance sheet: Depreciable Cost or Original Cost
Original Cost
This is the journal entry for depreciation adjustment.
Dr - Depreciation Expense
Cr - Accumulated Depreciation
If there is Net Income it gets recorded as a _______ on the IS and a __________ on the BS sections.
Debit to IS and Credit to BS
This is the j/e for Prepaid Insurance
Dr Insurance Expense
Cr Prepaid Insurance
This is the formula for Book Value
Cost - Accumulated Depreciation
This is the method of depreciation we have been recording (hint: to draw one you should use a ruler)
Straight Line