Journal Entries
September 10: Purchase supplies on account for $1,000.
Debit: supplies $1,000
Credit: accounts payable $1,000
What is the accounting equation?
Assets=liabilities+stockholders' equity
How would net income be affected from the transaction: Borrowing cash from the bank, $2,600.
No change
How do you decrease accounts payable?
With a debit
What is the equation for net income?
Revenues-expenses
September 1: Provide services to customers on account for $5,600.
Debit: accounts receivable $5,600
Credit: service revenue $5,600
How would the following transaction affect the accounting equation:
Purchase bike equipment by signing a note with the bank for $35,000.
Assets: increase by $35,000
Liabilities: increase by $35,000
SE: not affected
Record a journal entry for the transaction: Purchase a truck and sign a note payable, $14,900.
Debit: truck/equipment
Credit: notes payable
What is the normal balance for deferred revenue
Credit
How does net income appear on the balance sheet
Through retained earnings
September 4: Receive an invoice for $460 from the local newspaper for an advertisement that appeared on September 2.
Debit: advertising expense $460
Credit: accounts payable $460
An expense has what affect on the accounting equation
Decreases retained earnings
Alpha Company has an ending Retained Earnings balance of $51,900. If, during the year, the company paid dividends of $4,000 and had net income of $22,600, then what was the beginning Retained Earnings balance?
What would the journal entry be for a prepaid expense adjusting entry (you've used up part of the prepaid expense
Debit expense
Credit prepaid expense
How do revenues and expenses affect stockholders' equity?
Revenues=increases SE
Expenses=decreases SE
At the beginning of December, Coastal Corporation had $2,900 in supplies on hand. During the month, supplies purchased amounted to $3,200, but by the end of the month the supplies balance was only $1,900. What is the appropriate month-end adjusting entry?
Debit Supplies Expense $4,200
Credit Supplies $4,200
revenues, expenses, and dividends
On July 1, 2024, Moreno received $5,200 from a customer for advertising services to be given evenly over the next 10 months. Record the adjusting JE at Dec. 31
Debit: deferred revenue $3,120
Credit: service revenue $3,120
Name three accounts that have a normal debit balance
cash, accounts receivable, expenses, dividends, equipment, land, notes receivable, etc
If ending retained earnings is $1.56 billion, net income of $0.43 billion, and dividends of $0.06 billion, what is the amount of beginning retained earnings?
$1.19 billion
Cricket began the year with $30,000 in its Supplies account. During the year $68,500 in supplies were purchased and debited to the Supplies account. At year-end,supplies costing $28,500 remain on hand.
Prepare the adjusting journal entry for December 31
Debit: supplies expense $70,000
Credit: supplies
Dividends have what affect on the balance sheet and income statement
income statement: decreases retained earnings
balance sheet: decreases stockholders' equity
Debit supplies expense: $1,180
Credit: supplies: $1,180
Name three accounts that have a normal credit balance
accounts payable, notes payable, deferred revenue, service/sales revenue, retained earnings, etc
Use the following to calculate net income: revenues: $10,100; liabilities: $3,700; Expenses, $3,500; Assets, $17,000; Dividends, $1,600.
$6,600