Dr/Cr Rules
Accounting Equation
Accounting Equation
Length of time for which business activity is measured.
What is a Fiscal Period?
You pay $1,200 for a 12 month insurance policy on January 1. Record it.
What is Dr Prepaid Insurance 1,200, Credit Cash $1,200?
This form summarizes debits and credits in a single account to determine its balance.
What is a ledger?
Checks that have been written by a company but have not yet been charged to the company's checking account are referred to as __________.
What are Outstanding Checks?
Calculate Gross Pay for an individual who earns $10 an hour and works 41 hours per week.
$415
40 hrs * $10 = $400
1 hr * $10 * 1.5 = $15
Analyze source documents
Journalize entries
Post to the ledger
Prepare a trial balance
Record adjusting entries
Prepare an income statement
Prepare a balance sheet
Closing Entries
What are Steps of the Accounting Cycle?
Journalize this transaction: "Bought Supplies on account"
What is Dr Supplies, Cr AP?
During November, net debits of $5,000 were posted to the Cash account. What is the account's balance on October 31 if the balance at the beginning of the month was $6,000?
What is $11,000 Dr?
When reconciling a bank account, what should you do with an outstanding check?
What is subtract it from the bank statement balance?
Calculate the amount an individual would pay in social security tax if his/her gross pay is $3,000.
$186
= 3,000 * 6.2%
If total assets of a company are $10,000 and total liabilities are $8,000, the value of owner's equity is ___.
Which accounting concept requires that there be proof that a transaction occurred?
What is the impact of not posting the credit portion of the following transaction? Bought Supplies on Account.
What is Liabilities are Understated?
When reconciling a bank account, what should you do with miscellaneous bank fees?
What is subtract it from the check register balance?
Calculate the amount an individual would pay in medicare tax if his/her gross pay is $3,000.
= 3,000 * 1.45%
How do you decrease an Owner's Equity account?
Journalize this transaction: "Sold Services on Account to..."
What is Dr AR, Cr Sales?
What is the impact of not posting the credit portion of the following transaction? Received cash from the owner as an investment
What is Owner's Equity is Understated?
What is bank statement reconciliation or segregation of duties?
Explain the difference between gross pay and net pay.
Gross pay is the amount a person earns before taxes.
Net pay is the amount a person is takes home after taxes are subtracted.
To start a business, the owner invested $8,000.00, bought $1,500.00 of supplies with cash, paid cash for insurance coverage of $500.00, and bought an additional $300.00 of supplies on account. Total assets are ____.
What is $8,300?
What is Dr Drawing, Cr Cash?
During December, net credits of $400 were posted to the AP account. What was the account's balance on December 1 if the balance at the end of the month was $6,000?
What is $5,600 Cr?
This form, prepared by the bank, shows all of the deposits, withdrawals, and balances of a depositor's bank account.
What is a bank statement?
The (More? / Less?) allowances claimed by a person, the less taxes are taken out of his/her paycheck.
More allowances