Normal Balances
The cash account has this normal balance.
What is a debit balance?
What is a balance sheet?
An annual insurance policy was purchased 1/1 for $1200. No AJE's have been made since it was purchased. On an income statement for the year ended 7/31 this would be the amount of insurance expense.
How much is $700?
This type of an error occurs when $100 is entered as $1,000.
What is a slide error? (These are always divisible by 9)
This account is closed LAST.
What is the drawing account?
The accounts payable account has this type of a normal balance.
What is a credit balance?
This acccount, which tracks the supplies USED UP for a period of time would be placed on this financial statement.
What is the income statement (Supplies Expense)
An asset is purchased on 1/1 for $3,000. The estimated salvage value is $300. The annual amount of depreciation is:
This type of error occurs when 37 is recorded as 73.
What is a transposition error? (This type of error is also divisible by 9.)
This account is used to "sweep" the revenues and expenses into during the closing process.
What is income summary?
The Equipment account has this type of a normal balance.
What is a credit balance?
Fees Income would be located on this financial statement?
What is the income statement? (Fees Income is a revenue account.)
The accumulated depreciation account has this type of a normal balance.
What is a credit balance?
What is the balance sheet? (Note - accumulated depreciation is a contra asset.)
The drawing account has this type of a balance.
What is a debit balance?
This account, which tracks the owner's net worth, appears on this / these financial statements.
What is the Statement of Owner's Equity and the Balance Sheet?
You debit Capital and credit income summary for this closing entry. BE SPECIFIC
What is the closing entry for income summary when there is a net loss?