Vocabulary
A written order signed by the drawer instructing a drawee to pay a specific amount of money to the payee.
What is a check?
Journal entries that are needed in order to update specific ledger accounts to reflect correct balances at the end of an accounting period.
What are adjusting journal entries?
Set temporary account balances to zero to begin the next accounting period and update the capital account.
What is the purpose of closing journal entries?
What type of account is Petty Cash
What is an asset?
Amounts that have been subtracted from the company's records but have not been subtracted on the bank statement
What are outstanding checks?
What is the Post-Closing Trial Balance?
Prepaid rent adjustment would debit and credit what accounts
What is Debit Rent Expense and Credit Prepaid Rent?
Assets, liabilities, and capital
What are permanent accounts?
Debit to Petty Cash
Credit to Cash
What is the journal entry to establish Petty Cash?
Amounts that have been added to the company's records, but are not included in the bank statement balance
What are Deposits in Transit?
Procedures and methods to control a firm's assets as well as monitor its operations
What is Internal Control System?
Adjusting entries are journalized from the ____
What is the Worksheet?
Income Summary, Revenue, Withdraw, and Expenses
What are temporary accounts?
Debit the Expenses represented by the vouchers and Credit Cash
What is the journal entry to replenish/reimburse Petty Cash?
Process of comparing the bank statement balance to the company checkbook
What is Bank Reconciliation?
The one who pays the check is the __
What is the Drawee?
Adjusting journal entry for depreciation
What is debit Depreciation Expense and credit Accumulated Depreciation?
Revenue
Expenses
Income Summary
Withdraw
What is the correct order of closing accounts?
What is the account used to record the effects of cash overages and cash shortages
What is Cash Short and Over?
Which side of the bank reconciliation might require journal entries
What is the company's checkbook records?
Signing or stamping of one's name on the back of a check. We discussed three different types of this.
What is endorsement?
Blank, full or restrictive
What is the supplies adjusting journal entry if the trial balance shows supplies as $1,000 but an inventory shows $600 of supplies on hand.
What is a Debit to Supplies Expense and a Credit to Supplies for $400?
What is the closing journal entry if you have a net loss?
What is Debit to Capital and Credit to Income Summary?
This has the same account balance before and after reimbursement/replenishment
What is Petty Cash?
What is a check that has been deposited but was written on an account that lacks sufficient funds to back it up
What is a NSF check?