Journal Entries
The entry made to record a cash purchase of $100 of supplies.
What is debit Supplies $100 & credit Cash $100?
The financial statement that shows a company’s profitability over a period of time.
What is the Income Statment?
The basic accounting equation.
What is Assets = Liabilities + Owner's Equity?
The journal entry needed when a holiday shop sold $1,000 in decorations.
What is a debit to Cash of $1,000 and a credit to Revenue of $1,000?
Prepaid Insurance classification.
What is an asset?
The journal entry required when a business receives $500 from a customer for services performed.
What is debit Cash $500 and credit Revenue $500?
The financial statement where you would find the account “Accounts Receivable”.
What is the Balance Sheet?
If Assets = $50,000 and Liabilities = $30,000, calculate Owner’s Equity.
What is $20,000?
The journal entry required when the business paid $500 for holiday advertisements.
What is debit Advertising Expense $500 and credit Cash $500?
Notes Payable classification.
What is a Liability?
The journal entry required when the company purchased equipment for $2,000 on account.
What is debit Equipment $2,000 and credit Accounts Payable $2,000?
The statement that shows changes in owner’s equity during a specific time period.
What is the Statement of Owner's Equity?
The impact to the accounting equation when a company purchases a $5,000 machine on credit.
What is assets increase by $5,000 and liabilities increase by $5,000?
The impact to the accounting equation when the shop purchased $2,000 in holiday inventory on account.
What is Assets increase $2,000 and Liabilities increase $2,000?
Income Statement accounts that have normal debit balances.
What are Expenses?
The journal entry for paying an employee $800 in salary.
What is debit Salary Expense $800 and credit Cash $800?
This bottom line transfers from the Income Statement to the Statement of Owner's Equity.
What is Net Income?
The impact to the accounting equation when a business owner withdraws $2,000 for personal use.
What is a $2,000 decrease in assets and a $2,000 decrease in owner's equity?
The journal entry needed when the shop received $400 cash from a customer for a previously billed order.
What is debit Cash $400 and credit Accounts Receivable $400?
Used to summarize all transactions by account.
What is the General Ledger?
The journal entry needed when a business borrowed $10,000 from the bank, issuing a note payable.
What is debit Cash $10,000 and credit Note Payable $10,000?
A company’s revenue is $10,000, and expenses are $6,000. Calculate the return on sales.
What is 40%?
The change to Owner's Equity when a company’s Assets increased by $8,000, and Liabilities increased by $3,000
What is increase by $5,000?
The financial statement that will report that the holiday shop counted $500 in decorations as unsold inventory.
What is the Balance Sheet?
The account used to record money owed to suppliers for purchases made on account.
What is Accounts Payable?