Accounting 101
a business that performs aa activity for a fee
What is a service business?
Something valuable owned by a business, like cash or equipment.
What is an asset?
What is the correct entry for the transaction, PAID CASH FOR NEWSPAPER ADVERTISEMENT, $200?
Debit Advertising Expense and credit Cash
What is the correct journal entry for the transaction, RECEIVED CASH FROM OWNER DANA JACKSON AS INVESTMENT, $5000?
Debit Cash $5000 and credit Dana Jackson, Capital $5000
Lotta Milk, Inc. received $235 cash from Biggies Grocery for payment on account. What is the journal entry for Lotta Milk, Inc. to record this transaction?
Debit Cash, $235; credit Accounts Receivable/Biggies Grocery, $235
A promise to pay for goods or services provided by an individual or organization at a later date.
Purchase On Account
a business owned by one person
What is a proprietorship?
What is the correct journal entry for the transaction, RECEIVED CASH FROM SALES, $250?
Debit Cash and credit Sales
A summary-level report used to convey the financial position and performance of an organization within a specific time period.
What is the Financial Statement ?
Revenue and expenses are closing entry accounts which are what type of account?
What are temporary accounts?
A list of all account titles and account numbers used in a ledger.
What is the Chart of Accounts?
an account device used to analize transactions
What is a T-accounts?
What is the correct journal entry for the transaction, RECEIVED CASH ON ACCOUNT FROM BURKE SUPPLY FOR, $800?
What is Debit Cash and credit Accounts Receivable/Burke Supply?
James is closing the income summary account. His company had a net income of $900. The correct journal entry is to debit:
Income Summary, and credit Owner's Equity, $900.
This is Net Income (loss)
What is revenue minus expenses?
Each transaction affects at least two accounts, keeping the accounting equation balanced.
What is double-entry accounting?
Food Supply received $320 cash from Pancake Hut for payment on account. What is the journal entry for Food Supply to record this transaction?
Debit Cash, $320; credit Accounts Receivable/Pancake Hut, $320.
What is the correct journal entry for the transaction, RECEIVED CASH ON ACCOUNT FROM BURKE SUPPLY FOR, $800?
What is Debit Cash and credit Accounts Receivable/Burke Supply?
A list of all accounts and their balances to check if debits equal credits.
What is a Trial Balance?
Transactions are recorded when cash is received or paid.
What is cash based accounting?
Slick's Used Cars received $415 cash from Eddie Baker for payment on account. What is the journal entry for Slick's Used Cars to record this transaction?
Debit Cash, $415; credit Accounts Receivable/Eddie Baker, $415.
At the end of the accounting period, the prepaid insurance account needs to be adjusted by $721 to reflect insurance that has been used during the period. How is the adjustment recorded on the multi-column trial balance worksheet?
In the Adjustments columns, debit insurance expense, $721; credit prepaid insurance, $721
The function of accounting that helps an organization make well-informed decisions through the measurement, analysis, and communication of accounting information.
What is Managerial Accounting?