Transactional Analysis
The resulting effect on the balance sheet equation if a company using accrual accounting purchases $400 of computer paper on account.
What is a $400 increase in assets and liabilities?
This journal entry results if a company using accrual accounting bills a client for $10,000 of consulting services that were provided to the client during the current period.
What is a $10,000 debit to Accounts Receivable and a $10,000 credit to Service Revenue?
Accounts Receivable. 10,000
Service Revenue. 10,000
This adjusting entry is required if a trial balance shows $500 of supplies and $50 of supplies remain on hand at the end of the period.
What is a $450 debit to Supplies Expense and a $450 credit to Supplies?
This closing entry is required to close the dividends account if the adjusted trial balance shows $800 of dividends.
What is an $800 debit to Retained Earnings and an $800 credit to Dividends?
The accounting equation
What is assets = liabilities + owners equity
The resulting effect on a company's balance sheet equation if there is a $100,000 investment in the company.
What is a $100,000 increase in assets and stockholders' equity?
This journal entry results if a company using accrual accounting bills a client for $10,000 of consulting services that were provided to the client during the current period.
What is a $10,000 debit to Accounts Receivable and a $10,000 credit to Service Revenue?
Accounts Receivable. 10,000
Service Revenue. 10,000
This adjusting entry is required at the end of the current accounting period if a trial balance shows $100,000 of unearned service revenue and the company provides $10,000 of services during the current period.
What is a $10,000 debit to Unearned Service Revenue and a $10,000 credit to Service Revenue?
This closing entry is required to close out the revenue account if the adjusted trial balance shows $40,000 of Sales Revenue
What is a $40,000 debit to Sales Revenue and a $40,000 credit to Income Summary?
This financial statement shows the company's assets, liabilities, and equity
What is the balance sheet.
The resulting effect on the balance sheet equation if a company pays $25,000 in dividends.
What is a $25,000 decrease in assets and stockholders' equity?
This journal entry is recorded on the date a company using accrual accounting borrows $10,000 and signs a 2%, six-month note.
What is a $10,000 debit to Cash and a $10,000 credit to Notes Payable?
Cash. 10,000
Notes Payable. 10,000
This adjusting entry is required at the end of the current accounting period if a company uses $500 of utilities during the current period and the utilities bill arrives during the next accounting period.
What is a $500 debit to Utilities Expense and a $500 credit to Accounts Payable?
This closing entry is required to close expenses if the adjusted trial balance shows $10,000 of Depreciation Expense and Cost of Goods Sold of $5,000.
What is a $15,000 debit to Income Summary, a $10,000 credit to Depreciation Expense and a $5,000 credit to Cost of Goods Sold?
Income Summary. 15,000
Depreciation Expense. 10,000
Cost of Goods Sold. 5,000
These are the 2 accounts used to establish an estimate of accounts receivable that will not be collected.
What is bad debt expense and allowance for doubtful accounts
The resulting effect on the balance sheet equation if a company using accrual accounting purchases $80,000 of equipment, pays $20,000 cash and signs a 2%, five-year note for the balance.
What is a $60,000 increase in assets and liabilities?
This journal entry results if a company using cash accounting receives $10,000 for tax services that will be provided to clients during a future accounting period.
What is a $10,000 debit to Cash and a $10,000 credit to Service Revenue?
Cash. 10,000
Service Revenue. 10,000
This adjusting entry is required at the end of the current accounting period if a trial balance shows a $48,000 balance of Prepaid Insurance and $12,000 of the insurance policy expired during the current period.
What is a $12,000 debit to Insurance Expense and a $12,000 credit to Prepaid Insurance?
The types of accounts that are closed at the end of the accounting period
What are revenues, expenses and dividends?
These are the 3 inventory costing methods
What is FIFO, LIFO, and specific identification
The resulting effect on the balance sheet equation if a company using accrual accounting receives a $500 bill for the current period's advertising.
What is a $500 increase in liabilities and a $500 decrease in stockholders' equity?
This journal entry results if a company that previously purchased $5,000 of goods on account pays its outstanding obligation?
What is a $5,000 debit to Accounts Payable and a $5,000 credit to Cash?
Accounts Payable. 5,000
Cash 5,000
This adjusting entry is required at the end of the current accounting period if a trial balance shows $50,000 of equipment and the company depreciates the equipment at a rate of $1,000 each period.
What is a $1,000 debit to Depreciation Expense and a $1,000 credit to Accumulated Depreciation?
The balances in revenue and expense accounts after they are closed.
What is zero.
These 4 accounts make up equity.
What are common stock, dividends, income, and expense