Debits & Credits
When you pay cash for supplies, which two accounts are affected and how?
debit supplies, credit cash
What is the accounting equation?
Assets = liabilities + owners equity
The cash payments journal means there must always be a (dr or cr) _________ to ________
credit to cash
Social security is calculated at what percent of an employee's earnings?
6.2%
The third quarter of the year consists of which three months?
July, August, September
Debits and credits must always remain _________. Why?
equal; to keep the accounting equation in check
If I have $14,000 in assets and $4,500 in liabilities, what does that tell you about owner's equity?
I have $9,500 in owner's equity.
In the cash payments journal, what is almost always the document number?
Check number ___
For a business FUTA is calculated at ____%, and SUTA at ____% of the first $_______.
.8%; 5.4%; $7,000
FUTA stands for
Federal Unemployment Tax Act
When a business receives an investment from the owner, you do what?
debit cash, credit owner's capital
Liabilities are ______ to a business. They are most often in the form of _________ ___________, meaning what?
debts; accounts payable; we owe money
The general journal consists of all types of transactions. What are three of the document types that could be listed in that journal?
check, receipt, memorandum
Medicare is calculated at ______% of an employees ________ earnings. Calculate that for Mary, who earned $1437.92 this pay period.
1.45%; gross/pre-tax; $20.85
List the 5 categories / headers on the chart of accounts WITH numbers.
(100) Assets
(200) Liabilities
(300) Owner's Equity
(400) Revenue
(500) Expenses
All expenses increase with a _________. Explain why, and then list 5 examples of expenses.
debit; to decrease owner's capital (they are responsible); utilities, rent, communications, advertising, payroll, credit card fee, miscellaneous, payroll taxes
In accounting, __________ are things that we _______, including prepaid insurance. Give 3 more examples.
assets; own; supplies, accounts receivable, cash
Every journal entry MUST include what 4 specific things.
Anna's total earnings for June 1 - June 15 pay period are $1,239.00. Her Unemployment taxable earnings are $850.00. Calculate social security, SUTA and FUTA taxes owed.
SS: $76.82
SUTA: $45.90
FUTA: $6.80
What are the 5 deductions taken from the average full-time employee's paycheck? (We worked with all 5)
FIT, SS, Med., Health ins., Retirement
When you have a sale on account, _______ sales in the _______ column, and _______ accounts ____________ in the _________ column
credit, sales; debit, receivable, general
Owner's equity consists of which two owner's accounts? What is each of them used for?
owner's capital & owner's drawing; answers vary
List 3 types of journals and 3 types of ledgers that we worked in.
General journal, cash payments, cash receipts; accounts receivable, accounts payable, general ledger
How much are FUTA earnings?
Sam has $6325 in prior Accumulated earnings. He earned $1,478 in total earnings this pay period.
Sally has $14,093 in prior Accumulated earnings. She earned $1,780 in total earnings this pay period.
Sue has $5,890 in prior Accumulated earnings. She earned $1,215 in total earnings this pay period.
Sam: $675
Sally: $0
Sue: $1,110
Give one example of a transaction for the cash receipts journal and one example of a transaction for the cash payments journal.
answers vary; must pay cash / receive cash