Balance Sheet
Balance Sheet Part II
Debit / Credit
Accounting
Adjusting
100
• Creditors’ claims on assets • Company obligations to provide assets, products or services to others.
What is Liability
100
Balance Sheet account that carries normal debit balance.
What is Asset
100
o Difference between total debits and total credits for an account (including any beginning balance)
What is Account Balance
100
• A list of accounts and their balances at a point in time.
What is Trial Balance
200
• Resources a company owns or controls • Expected to yield future benefits
What is Assets
200
• Describes company’s financial position, types and amounts of assets, liabilities, and equity at a point in time.
What is Balance Sheet
200
• List of all ledger accounts and includes an identification number assigned to each account.
What is Chart of Accounts
200
• Increases liability, common stock, and revenue accounts • Decreases asset and expense accounts (Debit or Credit)
What is Credit
200
- Paid for in advance of receiving their benefits - Asset on Balance sheet
A. Prepaid (Deferred) expenses
300
• Accounts Payable, Note Payable, Unearned Revenue Accounts, Accrued Liabilities (A/P), Wages Payable, Taxes payable, and Interest Payable
What is Liability
300
• Difference between a company’s assets and its liabilities
What is Equity
300
• At least two accounts at least one debit and at least one credit • Total amount debited must equal the total amount credited • Accounting Equation must not be violated (Assets = Liabilities + Equity)
What is Double Entry Accounting
300
• Gives a complete record of each transaction in one place
What is Journal
300
Depreciation Expense XX Accumulated Depreciation XX
Adjusting journal to record depreciation
400
o Amount stockholders invest in company
What is Contributed Capital (Common Stock)
400
Balance Sheet Account Carry normal credit balance
What is Liability or Equity
400
o Income that has not been distributed to its stockholders
What is Retained Earnings
400
A record of increases and decreases in a specific asset, liability, equity, revenue, or expense item.
What is Account
400
Supplies Expense 1,050 Supplies 1,050
What is Adjusting Journal to record Supplies Expense.
500
Cash, Accounts Receivable, Note Receivable, Prepaid Accounts, Supplies Accounts, Equipment Accounts, Buildings Accounts, Land Accounts
What is Assets
500
• Transferring journal entry to ledger
What is Posting
500
• Increases asset and expense accounts • Decreases liability, common stock, and revenue accounts (Debit or Credit)
What is Debit
500
• Recognize revenues when earned and expenses when incurred (match expenses with revenue)
What is ACCRUAL ACCOUNTING
500
Unearned Revenue XX Consulting Revenue XX
What is Adjusting Entry to record Revenue.
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