Accounting Chapters 1-5

Transactions

100

Paid $400 cash for supplies

Debit Supplies Credit Cash

200

Bought $200,000 of supplies on account from Dublin Jerome

Debit - Supplies Credit - Accounts Payable Dublin Jerome

300

Paid $500.97 to owner Mr. Rider for personal use.

Debit - Mr. Rider Drawing Credit - Cash

400

Paid $3.44 for postage

Debit - Miscellaneous Expense Credit - Cash

500

Discovered that a transaction for office supplies bought last month was jornalized and posted in error as a debit to Supplies - Store instead of Supplies - Office $45

Debit - Supplies - Office Credit - Supplies - Store

Posting

100

Why do we post?

Organization

200

What is the Revenue Division's posting number?

400

300

2 Parts to opening an account in a general ledger

Account Title Account Number

400

Where are the 2 places we look to prove cash?

Balance of Cash in Cash Account Cash on Hand

500

Describe the 2 parts of an account number

150 1 = general ledger division 50 = location within the general ledger

Journalizing

100

Written form giving acknowledgement for cash received

Receipt

200

Paid Cash to Owner for personal use 2 ACCOUNTS AFFECTED?

Drawing Cash

300

Each transaction affects at least 2 accounts is called?

Double Entry Accounting

400

What is a form on which a brief message is written describing a transaction

Memo

500

TRUE OR FALSE THERE IS A MAXIMUM OF @ ACCOUNTS PER TRANSACTION AFFECTED

False

Affecting Accounts

100

Paid Cash for Misc. Expense

Assets - Down Expenses - Down

200

Paid Cash for Supplies

No Change

300

Paid Cash for Rent

Assets - Down Expenses - Down

400

Paid Cash to Owner for Personal use

Assets - Down Owner's Equity - Down

500

Paid $500 Cash and $500 on Account for $1000 of Supplies

Assets - Up Liabilities - Up

Final Jeopardy

100

What is the Acronym Mr. Richardson used to help you remember the normal balances of accounts?

ALICE