Vocab Terms
Right side of the T-Account
Credit
Which financial statement does cash appear on?
What are the two accounts used for adjusting supplies?
Supplies & Supplies Expense
What account do you DEBIT in the this transaction:
Received cash from owner, $10,000.00.
What is cash?
What is the normal balance of Cash?
Debit
Left side of the T-Account
Debit
Which financial statement does Service Sales appear on?
Income Statement
What are the two accounts used to adjusting Prepaid Insurance?
Prepaid Insurance & Insurance Expense
What account do you CREDIT in this transaction:
Provided services to J. Carmichael on account, $60.00.
What is the normal balance of a liability?
Credit
When Total Revenue is less than Total Expenses, what occurs?
Net Loss
Fill in the blanks:
On the Balance Sheet, your _____ should be equal to your ________ & _________
Assets should be equal to Liabilities & Equity
Value of supplies on hand on December 31st was $550. What would the adjusting entry be for supplies is the Trial Balance showed that supplies was $650?
Debit Supplies Expense: $100
Credit Supplies: $100
What account do you DEBIT in this transaction:
Sold supplies on account to Good Co., $600.00.
Accounts Receivable- Good Co.
Expenses are ALWAYS what?
Debited
The area of accounting that focuses on presenting financial information to external users
What is the formula/equaiton we learned this semester that appears on the Income Statement?
Net Income = Revenue - Expenses
Value of Prepaid Insurance as of December 31st was $120. What would the adjusting entry be for Prepaid Insurance if the Trial Balance showed that Prepaid Insurance was $200?
Debit Insurance Expense: $80
Credit Prepaid Insurance: $80
What account do you CREDIT in this transaction:
Bought supplies on account from Treat Cafe, $1,000.00.
Account Payable- Treat Cafe
Fill in the blank:
Capital ________ owner's equity
Increases
The area of accounting that focuses on presenting financial information to internal users
Managerial Accounting
What is the equation for calculating the ending capital balance that appears on the Statement of Owner's Equity?
Beg Capital + Net Income - Drawings = End Capital
What document do you plan your adjustments?
the Work Sheet
What account do you CREDIT in this transaction:
XYZ Company paid cash on amount that was owed, $550.00.
Accounts Receivable- XYZ Company
Expenses ________ owner's equity
Decrease