T-accounts
What are the 2 types sides of a T-account called?
Which side of a T-account is the debit side?
The left side
This is money a business earns from providing goods or services.
What is revenue?
This is the book of original entry where all transactions are first recorded in chronological order.
General Journal
The first two columns on a worksheet are for listing this type of financial information from the ledger.
What is the trial balance
On which side of the T-account are assets increased
The debit side
Of the 5 main account types debits increase which two main types of accounts?
Asset and Expenses
This type of account normally has a debit balance and represents the costs of doing business.
What is an expense account?
When posting from the journal to the ledger, this column in the journal indicates the ledger account that will be affected.
What is the posting reference (PR) column?
The next thing you do after you enter in the totals from the general ledger on the work sheet
Total up the trail balance debits and credits
If a business pays cash to buy supplies, how will this transaction be recorded in the Cash and Supplies T-accounts?
Cash is credited, and Supplies is debited.
If a company pays off an account payable, which accounts are affected, and how?
Accounts Payable is debited and Cash is credited.
When a company pays salaries to employees, this account is debited.
What is Salaries Expense?
This process ensures that the total of all debit balances equals the total of all credit balances in the ledger.
Preparing a trial balance
On a worksheet, if total debits in the Income Statement columns are greater than total credits, this result occurs.
Net loss
A company receives $1,200 from a customer for services previously billed. Which T-accounts are affected, and how?
Cash is debited and Accounts Receivable is credited.
This type of account normally has a credit balance, and includes accounts such as Accounts Payable
Liability Account
If a company earns $5,000 in service revenue and incurs $3,200 in expenses, what is the net income or net loss
Net income $1800
If a company records a $500 cash payment to a supplier in the general journal, this account is debited and this account is credited in the general ledger.
Accounts Payable debited; Cash credited
The two final columns on the worksheet are used to prepare this key financial statement.
The balance sheet
After posting all entries, a T-account for Accounts Payable shows debits of $1,000 and credits of $4,500. What is the account’s ending balance, and on which side does it appear?
The balance is $3,500 credit.
When a company receives cash from a customer for services performed, the Cash account is _____ and the Service Revenue account is ____.
2 Credit
At the end of the accounting period, revenues and expenses are closed to this account to determine net income.
What is Income Summary?
DAILY DOUBLE
DAK IS______
a liability to the Cowboys!!
Trash is an acceptable answer
f the Income Statement credits total $5,000 and the Income Statement debits total $4,000, what is the result?
$1,000 net income