Vocabulary
The amount in an account
What is account balance?
The relationship between assets, liabilities, and owner's equity can be written as an ________
What is an equation?
Received cash from the owner as an investment
cash +
owners equity +
Received cash from owner as an investment, $3,000.00.
+ 3,000 cash
+ 3,000 owner's equity
Paid cash for rent, $300.00.
-300 cash
-300 owner's equity
The amount remaining after the value of all liabilities is subtracted from the value of all assets
What is owner's equity?
When cash is received from a sale, the total amount of both assets and owners equity is _______________
paid cash for insurance
Cash +
Prepaid Insurance +
Received cash from sales, $800.00.
cash +800
owner's equity +800
Received cash from owner as an investment, $500.00.
cash +500
Owner's equity +500
Assets taken out of a business for the owner’s personal use
What is Withdrawals?
When cash is paid on an account, a liability is _______
What is decreased?
Bought supplies on account from office depot
supplies +
accounts payable +
Paid cash for supplies, $100.00.
Cash +100
Supplies +100
Paid cash on account to Five Star Supply, $700.00.
cash -700
accounts payable -700
A record summarizing all the information pertaining to a single item in the accounting equation
What is an account?
When a company pays insurance in advance, it records the payment as a ___________________ because the insurer owes future coverage.
What is an asset?
Paid cash for rent
cash -
owner's equity -
Received cash on account from Ana Santiago, $400.00.
Accounts Receivable -400
cash +400
Bought supplies on account from Five Star Supply, $700.00
Accounts Payable +700
Supplies +700
The account used to summarize the owner’s equity
What is capitol?
When items are bought and paid for later this is referred to as _____________
*hint not the account name*
what is buying on account?
Received cash on account from Imagination Stations
cash +
accounts receivable- imagination stations -
Sold services on account to Ana Santiago, $730.00.
Accounts Receivable - Ana Santiago +730
Owner's Equity +730
Paid cash to owner for personal use, $200.00.
Cash - 200
Owner's Equity -200