Financial Statements
Adjusting Entries
Closing Entries
GL & Journal Entries
The Journals
100
The first financial statement a company prepares at fiscal period end.
What is the income statement?
100
The journal adjusting entries are recorded in.
What is the general journal?
100
The journal closing entries are recorded in.
What is general journal?
100
An increase in an asset account or a decrease in a revenue account.
What is a debit?
100
Sales Journal
What journal all transactions that record sales on accounts recorded in?
200
The financial statement based on the accounting equation.
What is the balance sheet?
200
This ensures that revenue recognition and matching principles are followed.
What are adjusting entries?
200
Net Income (Loss) Hint: Net Income (Loss) as it relates to the closing process
What is the value in the Income Summary account after credit based temporary accounts (nominal accounts) and debit based temporary accounts are closed? -OR- What is the value closed out of the Income Summary account and into Owner's Capital (after closing credit & debit based) nominal accounts?
200
The normal balance of a contra revenue (i.e. Sales Discounts) account.
What is a Debit?
200
Cash Receipts Journal
What journal all transactions that record "cash coming into the company" are recorded in?
300
Net Sales LESS Cost of Goods Sold.
How do you calculate Gross Margin? -OR- What is Gross Margin?
300
Prepaid expenses or unearned revenues.
What are deferrals?
300
A temporary (nominal) account.
What are all revenue or expenses or owner's drawing accounts?
300
Bad Debt Expense $1,000 Allowance for Doubtful Accounts $1,000 Hint: Assume the company uses the allowance method for account for bad debt (based on Accounts Receivable)
What is the journal entry for a company that uses the allowance method for recording bad debit (based on A/R) assuming a credit balance in the Allowance for Doubtful Accounts of $1,000 and an estimation of 2% of A/R will be uncollectible (A/R Balance of $100,000)? Or some other combination that would yield this result.
300
A journal entry with three or more accounts.
What is a compound entry.
400
The financial statement that looks at cash payments and cash receipts of a company for a specific time period.
What is Statement of Cash Flows?
400
Revenues earned but not yet recorded at the statement date are this.
What are accrued revenues?
400
This type of account is not closed at the end of the year, for example asset accounts.
What is a permanent (real) account?
400
Transferring journal entries to the ledger accounts is called this.
What is the posting process?
400
The special journal you record purchases on account in.
What is the Purchases Journal?
500
The kind of an asset that serves to reduce the value of total assets.
What is a contra-asset?
500
An adjusting entry for prepaid expenses increases an expense account and decreases a _______ account.
What is asset?
500
Debit to: John Doe, Owner's Capital $100,000 Credit to: Income Summary $100,000
What is the closing entry if a company has a 100,000 Net Loss?
500
The sum of the ending values of all of the accounts receivable subledger accounts?
What is the ending balance in the Accounts Receivable control account equal to?
500
Inventory Account in the Cash Payments Journal. Hint: Why do companies typically use the Inventory account in the Cash Payments Journal.
What is the account you post a credit to, in the Cash Payments Journal, to record a purchase discount for a company that uses a perpetual inventory system?
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