Entries
What entries should be made:
Received cash on accounts.
Debit: Cash
Credit: Accounts Receivable
What is a business called that makes a product and sells it to its customers?
Manufacturer
What are the three main financial statements?
Income Statement, Balance Sheet, and Statement of Owner's Equity
What entries should be made:
Received payment on account.
Debit: Cash
Credit: Accounts Receivable
Assets=$100,000, Liabilities=$40,000, Owner's Equity=?
Owner's Equity=$60,000
What entries should be made:
Purchased supplies on account
Debit: Supplies
Credit:Accounts Payable
What are the 3 permanent accounts?
Assets, Liabilities, Capital
What accounts are on the Balance Sheet?
Assets, Liabilities, Owner's Equity (Capital/Drawing)
What entries should be made:
Owner invested money in the business
Debit: Cash
Credit: Owner, Capital
Assets=?, Liabilities=$20,000, Owner's Equity=$30,000
Owner's Equity=$50,000
What entries should be made:
Paid rent for month of January
Debit: Rent Expense
Credit: Cash
What is the total amount of an employee's earnings before any deductions are calculated?
Gross pay
What accounts are on the Income Statement?
Revenues (Sales), Expenses, Income Summary, Purchases
What entries should be made:
Owner invested computer equipment in the business.
Debit: Equipment
Credit: Owner, Capital
Assets=$120,000, Liabilities=?, Owner's Equity=$80,000
Liabilities=$40,000
What entries should be made:
Wrote a check to owner for personal use.
Debit: Owner, Drawing (Withdrawals)
Credit: Cash
What is it called when you record entries in a general journal?
Journalizing
Which account do Expenses and Revenues close into?
Income Summary
What entries should be made:
Established a petty cash fund.
Debit: Petty
Credit: Cash
Assets=?, Liabilities+Owner's Equity=$300,000
Assets=$300,000
What entries should be made:
Decrease in Merchandise Inventory
Debit: Income Summary
Credit: Merchandise Inventory
What is the amount of pay an employee receives after deductions are taken from their gross pay?
Net pay
Put these in order of closing accounts-
(Drawing, Revenues, Income Summary, Expenses)
1. Revenues 2. Expenses 3. Income Summary 4. Drawing
What entries should be made:
Sold services on account.
Debit: Accounts Receivable
Credit: Sales
Assets=$180, Liabilities=$40,000, Owner's Equity=?
Owner's Equity=$140,000