Define the Term
Find the Error
T-Accounts
???
Upcoming Skills
100
An equation showing the relationship among assets,
liabilities, and owner’s equity is called the. __________.
accounting equation
100
Oct. 15 - Dace Kapen, Capital should have been credited
100
Bought supplies on account from Sam Jones, $200.00
Dr. Supplies $200.00
Cr. Accts. Pay - Sam Jones $200.00
100
When the owner withdraws cash, the owner’s drawing account is
a. increased by a debit.
b. increased by a credit.
c. decreased by a debit.
d. decreased by a credit.
a. increased by a debit.
100
A single line ruled across the journal’s amount columns indicates
a. the date is the last day of the month.
b. the totals have been verified as correct.
c. that columns are to be totaled.
c. that columns are to be totaled.
100
The amount remaining after the value of all liabilities is
subtracted from the value of all assets is called __________.
owner’s equity
100
The amount recorded on the right side of a t-account is a debit.
The amount recorded on the left side of a t-account is a debit.
The error is:
The amount recorded on the left side of a t-account is a debit.
100
!!! DAILY DOUBLE !!!
Mike Smith owns Smith's Landscaping.
He invests $1,000 in his business.
Dr. Cash $1,000.00
Cr. Mike Smith, Capital $1,000
100
State the four questions used to analyze a transaction.
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?
100
When cash is received on account, the amount is recorded in the
a. Sales Credit column and Cash Debit column.
b. General Credit column and Cash Debit column.
c. General Debit column and Cash Credit column.
b. General Credit column and Cash Debit column.
100
An accounting device used to analyze transactions is called a ___________.
T-Account
100
!!! DAILY DOUBLE !!!
A business completes these transactions:
Owner invests $3,000 cash.
Business purchases $500 of supplies for cash.
Business earns $700 in sales revenue, receiving cash.
A student records the following:
Cash: Debit $3,000; Credit $500; Debit $700.
Supplies: Credit $500.
Dave Kapen, Capital: Credit $3,000.
Sales: Debit $700.
What is/are the error(s)?
Supplies should be debited $500, not credited. Sales should be credited $700, not debited. Cash and Capital are correct.
100
Received cash on account from Lawrence Jones, $125.00
Dr. Cash $125.00
Cr. Accts. Rec. - Lawrence Jones $125.00
100
A business recorded the following transaction:
Cash was debited for $1,500.
Dave Kapen, Capital was credited for $1,000.
Sales was credited for $500.
Is this transaction recorded correctly? Explain your answer.
Yes. Total debits equal total credits ($1,500). The entries represents the owner investing $1,000 cash and the business earning $500 in cash sales.
100
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What columns would the dollar amounts go into if the transaction is:
Made a sale for cash, $100.00
Sales Credit column and Cash Debit column
100
A list of accounts used by a business is called a
________.
Chart of Accounts
100
A business has these transactions:
Dave Kapen invests $5,000 cash.
The business purchases $800 in supplies for cash.
The business earns $1,500 in sales revenue, receiving cash.
A student records the entries correctly but calculates these ending balances:
Cash: $7,300 debit
Supplies: $800 debit
Dave Kapen, Capital: $5,000 credit
Sales: $1,500 credit
Which balance is incorrect, and what should it be?
Cash is incorrect. The correct balance is $5,700 debit ($5,000 − $800 + $1,500)
100
Kate Panet took $500 out of her business for personal use
Dr. Kate Panet, Drawing $500
Cr. Cash $500
100
When services are sold for $500 cash
a. Sales is decreased with a debit and an Accounts Receivable account is increased with a credit.
b. Sales is increased with a debit and Cash is increased with a credit.
c. Sales is increased with a credit and an Accounts Receivable account is increased with a debit.
d. Sales is increased with a credit and Cash is increased with a debit.
d. Sales is increased with a credit and Cash is increased with a debit.
100
What happened in this transaction?
Owner invested $2,000.00 into the business.
100
________ is the process of planning, recording, analyzing, and interpreting financial information
Accounting
100
XYZ Company recorded the following totals:
Cash: $500
Supplies: $700
Sales: $1,000
Expenses: $500
Did XYZ Company earn a net profit or experience a net loss? Calculate the amount.
Net profit of $500 ($1,000 Sales − $500 Expenses)
100
Paid cash on account to Ace Hardware, $20.00
Dr. Acct. Pay - Ace Hardware $20.00
Cr. Cash $20.00
100
On a scale of 1 - 5 (with 5 being the best), how much do you love Accoutning class?
I hope you said 5
But you win as long as your answer was honest!
100
!!! DAILY DOUBLE !!!
If I had to create an account for Internet Expense, what account number should it be given?
555 Internet Expense