Vocab
The assets or other financial resources available to a business:
Capital
What is the default tax rate in our online textbook?
6%
This symbol is used to begin a formula
= (equals sign)
What goes in the "Post. Ref" box when we state the balance at the beginning of each month within an accounts payable subsidiary ledger? (think: online textbook)
Check Mark
If we are looking at an Accounts Payable controlling account, buying merchandise on account would be recorded as a ______ (debit/credit) on the corresponding subsidiary ledger.
Credit (we already start with a credit balance)
A special journal used to record only sales of merchandise on account.
Sales Journal
Making a sale on account would increase the balance in which of the following accounts?
A. Accounts Receivable
B. Cash
C. Owners Drawing
D. Accounts Payable
A. Accounts Receivable
Each box in Excel (Ex: A1, C3, F6, etc.) is called a:
Cell
An account in a general ledger that summarizes all accounts in a subsidiary ledger is called a:
Controlling Account
Using the local tax rate in Montgomery County of 8%, what would be your total if you bought a new phone from the local store for $800, and a new phone case for $35, both on the same transaction?
$901.80
Goods that a business purchases to sell:
Merchandise
The most recent type of source document we have introduced in this unit, itemizing each product/service bought
Sales Invoice OR Purchase Order (PO)
This symbol is used for multiplication within a formula:
* (called an "asterisk" or "star")
A ledger that is summarized in a single general ledger account is called a:
Subsidiary Ledger
Grand Oaks High School places a purchase order for $4,500 to Office Depot for pencils and paper. Given our knowledge about rules and calculating sales tax, what would be the final amount Grand Oaks High School pays for this order?
$4,500 (Schools are tax-exempt)
A business from which merchandise, supplies, or other assets are purchased is called a:
Vendor
If the we used our default tax rate from our online textbook and notice there is a transaction that charges the customer a total of $12 in sales tax alone, what was the amount of the original sale?
$200
Within a subsidiary ledger for a merchandising business on our accounts payable controlling account, what would our updated balance be if we had a starting credit balance of $1,000, purchased $400 dollars worth of merchandise, and then paid off $600 of debt to this company?
$800
When purchasing supplies and merchandise on account from another business, the controlling account would be:
Accounts Payable
Crumbl Cookies places a purchase order for $3,000 to a local wholesaler for ingredients. Given our knowledge about rules and calculating sales tax, what would be the final amount Crumbl pays for this order if we use the default tax rate from our online textbook?
$3,180
[2 answers] A merchandising business that sells to those who use or consume the goods is called a ______ merchandising business, whereas a _________ merchandising business buys and resells merchandise primarily to other merchandising businesses (sometimes to individual customers too)
Retail ; Wholesale
On a sales journal, accounts receivable is a ______, sales is a _______, and sales tax payable is a _______.
(all answers are debit or credit)
On a sales journal, accounts receivable is a DEBIT, sales is a CREDIT, and sales tax payable is a CREDIT.
In our ongoing accounts payable controlling account we have worked on together for several class periods, name all 4 subsidiary ledgers:
(in no particular order)... Warren River Supply, Newton Industries, Zodiac Industries, Reston Corporation
When selling inventory and merchandise on account to another business, the controlling account would be:
Accounts Receivable
Within a subsidiary ledger for a merchandising business on our accounts payable controlling account, what would our updated balance be if we had a starting credit balance of $2,250, purchased $1,400 dollars worth of merchandise, and then after our business made a huge sale of $3,000, we decided to pay off $2,500 of debt to this company?
$1,150