Journal Entries
Sold services on account to Sandoval Company, $425.00
Debit: AR - Sandoval Company, $425
Credit: Sales, $425
Calculate new income (loss)
Sales: 57,000
Expenses: 61,300
(4,300)
What account is debited when you close expense accounts AND by how much should it by debited for?
Income Summary for the total of all expenses
What type of account is income summary? (temporary or permanent)
Temporary
A company purchases supplies with cash, $5,600. What is the journal entry?
Debit: Supplies, $5,600
Credit: Cash, $5,600
Which financial statement is as of a specific date?
Balance Sheet
A company needs to perform closing entries. Their sales for the period were $42,000. What is the journal entry needed?
Debit: Sales, 42,000
Credit: Income Summary 42,000
Define It: Journal entries recorded to update general ledger accounts at the end of a fiscal period
Adjusting Entries
Paid cash to owner as withdrawal of equity, $1,800.00
Debit: Drawing, $1800
Credit: Cash , $1800
What accounts will be included on the balance sheet?
Assets, Liabilities & Equity
What accounts are left with a balance after closing entries?
Permanent Accounts (Assets, Liability, Capital)
Define It: Accounts used to accumulate information from one fiscal period to the next. They are not zeroed out
Permanent Accounts
Paid cash for heating bill, $333.00
Debit: Utilities Expense, $333
Credit: Cash, $333
Separate the accounts based on which financial statement they belong on -
Cash
Advertising Expense
Capital
Accounts Payable
Sales
Balance Sheet - Cash, Capital, Accounts Payable
Income Statement - Advertising Expense, Sales
We learned 4 closing entries. What 4 account types are closed during the closing process?
Sales
Expenses
Income Summary (closed by the amount of net income/loss)
Drawing
Define It: A person or business to whom a liability is owed.
Creditor