Balance Sheet
Cash is an
Asset
Sales of services or merchandise are classified as
Revenue
Money or items of value the owner gives to the company
Investments
What is the adjustment for the amount of supplies used during the period
Supplies Expense Debit
Supplies Credit
What is the Accounting Equation
Assets = Liabilities + Owner's Equity
A Payable is a
Liability
The payments made to operate the business are
Expenses
Money the owner takes out of the company
Withdrawals (drawing)
What is the entry for the expiration of insurance used during the period
Insurance Expense Debit
Prepaid Insurance Credit
What do you multiply the hourly wage amount by to get overtime?
1.5
What order are Accounts Payable vendors listed
Alphabetical
Expenses are listed in this order
Alphabetical
These two items will increase the Owner's Capital account
Investments and Net Income
Which account is closed first in the closing entries.
Revenue
The Accounts Receivable Ledger must equal
The Accounts Receivable Account
If you know total assets and total liabilities, how do you find the capital amount?
Assets minus liabilities
When Revenue exceeds expenses
Net Income
These two items will decrease the Owner's Capital account
What temporary account is used to close Revenue and Expense into
Income Summary
A Trial Balance on a worksheet shows the account balances before
Adjustments.
The asset accounts are listed in order of
Liquidity
How does a net loss affect the owner's capital account
Decreases
The ending balance of the Owner's Capital Account appears on which two statements (hint: look at the categories)
Balance Sheet and Statement of Changes in Owner's Equity
What account is the Owner's drawing and Income Summary closed into
Owner's Capital
Post Closing Trial Balance Shows the balances at the
End of the period