Account names and Balances
Cash, supplies, etc.
What is an example of an asset?
Nate's Automotive began in March with $440 of supplies. At the end of March, $174 remain.
What is a $266 adjustment for the month of March?
Nate's Automotive began in March with $440 of supplies. At the end of March, $174 remain.
What is Supplies and Supplies Expense?
A list of all general ledger account balances at the end of an accounting period.
What are revenues and expenses?
The normal balance of a liability
What is a credit?
Nate's automotive paid $6,908 on January 1 to rent warehouse space for four months.
What is a $1,727 adjustment for the Month of March?
Nate's automotive paid $6,908 on January 1 to rent warehouse space for four months.
What is prepaid warehouse rent and warehouse rent expense?
A list of all general ledger account balances at the end of an accounting period before any adjusting entries have been made.
What is the Unadjusted trial balance?
These three types of accounts are recorded on the balance sheet.
What are Assets, Liabilities and Owner's Equity?
The normal balance of the owner's Distribution account.
What is a debit?
On February 1, Nathaniel paid $2,400 to renew his annual business insurance policy. Coverage was provided to Nate's Automotive in March.
What is a $200 adjustment for the month of March?
On February 1, Nathaniel paid $2,400 to renew his annual business insurance policy. Coverage was provided to Nate's Automotive in March.
What is prepaid insurance and insurance expense?
A series of journal entries made at the end of an accounting period to convert or “adjust” a company’s accounting records from a cash basis to an accrual basis
What are adjusting entries?
$3,095 Revenue - $2,247.46 Expenses=
What is $847.44 Net Income?
If I make a cash payment on an account payable.
Cash is credited, accounts payable is debited.
On March 15th, Nate's automotive received $10,000 to repair transmissions in 10 fleet vehicles. On March 31st. 7 transmissions have been repaired.
What is a $7,000 adjustment for the month?
On March 15th, Nate's automotive received $10,000 to repair transmissions in 10 fleet vehicles. On March 31st. 7 transmissions have been repaired.
What is unearned service revenue and service revenue?
An expense incurred or revenue earned that has not yet been recorded in the accounting records but must be included in the current period’s financial statements.
Free Points
If the owner withdraws money from the business for personal use.
The cash account is credited and the Distribution account is debited.
On January 1, Nathanial prepaid 6 months of office rent for $6,600.
What is a $1,1000 adjustment for the month?
On January 1, Nathanial prepaid 6 months of office rent for $6,600.
What is prepaid office rent and office rent?
A previously recorded prepayment of an expense or receipt of cash that must be divided or “deferred” over two or more accounting periods.
What are deferrals?
Tax Preparation Revenue belongs in this financial statement.
What is Income Statement?