An account with an opposite balance to the normal balance of its associated account.
What is a contra account?
100
Adjustments for Prepaid Expenses are also referred to as
What is Deferred Expenses?
100
A merchandising business sold merchandise costing $500 to a customer on account for $800. What accounts are debited and credited? The 4 accounts you use are accounts receivable, cost of goods sold, sales and merchandise inventory. Tell me the dr and cr and amounts for each account.
DEBIT A/R 800
CREDIT SALES 800
DEBIT Cost of Goods Sold 500
CREDIT Merchandise Inventory 500
100
These are prepared to zero out income statement accounts.
What are Closing Entries?
100
This statement formally represents Revenue - Expenses.
What is Income Statement?
200
An informal representation of a general ledger account.
What is a T-account?
200
Unearned fees this month are $900, the general ledger balance in the unearned fees account is $2000. The adjusting entry is? (What is debited and credited and for how much?)
DR Unearned Fees $1,100
CR Fees Earned $1,100
200
Prepaid insurance expired during the period totals $1300. The Balance in the General Ledger is $2000. What is the adjusting entry?
DEBIT Insurance Expense $1,300
CREDIT PPI $1,300
200
Net income belongs to owners, therefore a closing entry transfers the balance in an income statement account to an account classified as owners' equity. For a sole-proprietorship this account is called
What is the capital account?
200
The financial statement represents ALOE or ALSE.
What is a Balance Sheet?
300
The process of recording the appropriate part of a journal entry to the affected account.
What is posting?
300
The adjusting entry for a fixed asset. (aka what account is debited and what account is credited)
What is Debit Depreciation Expense and Credit Accumulated Depreciation.
300
That GAAP that relates to accounting events must be specific to the entity for which accounting records are kept.
What is Business Entity?
300
Net income belongs to owners, therefore a closing entry transfers the balance in an income statement account to an account classified as owners' equity. For a corporation this account is called
What is Retained Earnings?
300
The financial statement describes Operating, Investing and Financing cash activity.
What is Statement of Cash Flows?
400
A listing of a all general ledger accounts and their respective balances to ensure that debits equal credits.
What is a Trial Balance?
400
The adjusting entry for wages accrued for the last 2 days of the month (Mon/Tues) $400. (what account is debited, what account is credited)
What is Debit Wage Expense and Credit Wage Payable? (or Salary)
400
The 2 GAAPs relating to the fact that accounting events must impact the entity's assets, liabilities and owners' equity are going concern and __
What is Periodicity?
400
Entry to close the fees earned account for a corporation.
What is Debit FEES EARNED and Credit RETAINED EARNINGS?
400
What are the two accounts listed on the owner's equity section of a corporation's balance sheet?
What is Capital Stock and Retained Earnings?
500
The recorded effect of an accounting event.
What is Journal Entry?
500
The GL balance for the Supplies account is 2,500. The supplies on hand are 400. What is the adjusting entry? (in other words what is debited, what is credited and how much?)