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Journaling
Definitions
Hodgepodge
What accounts are affected?
What the ?
100
Any document that provides information about a business transaction.
What is a source document?
100
An accounting period of 12 months in duration.
What is a fiscal year?
100
Shows the current balances of all the accounts of a business separately.
What is a ledger?
100
Bought cooking equipment for the business by writing a check for $5,000.
What is a debit to equipment and a credit to cash?
100
A balance on the debit side of an income summary account would indicate this.
What is a net loss?
200
In a general journal, always enter _____ before ____.
What is enter DEBITS before CREDITS?
200
For every debit, there is a credit.
What is double-entry accounting?
200

The difference between total revenue and total expenses when total expenses are greater.

What is a net loss?
200
Received $500 cash from a customer on a credit account.
What is a debit to cash and a credit to accounts receivable?
200

An expense account is closed with a ______ to the expense account and a _____ to the Income Summary account.

What is a CREDIT to the expense account and a DEBIT to the Income Summary account?

300
What's done if an error is discovered after posting.
What is a correcting entry?
300
A business transaction affects this many accounts.
What is two?
300
A list of all the accounts used by a business.
What is a chart of accounts?
300

The owner invested $30,000 in the business.

What is a debit to cash and a credit to capital?

300
Comparing selected ratios and percentages over a period of time.
What is trend analysis?
400
A day-by-day listing of transactions of a business.
What is a journal?
400

A business segment that produces revenue.

What is a profit center?
400
During closing, the balance from the income summary account is carried over to _____.
What is Capital?
400
Paid $200 for an advertising expense.
What is debit advertising expense and credit cash?
400

Gross profit on sales minus direct expenses.

What is contribution margin?
500
The journal entry when closing a drawing account at the end of an accounting cycle.
What is a debit to capital and a credit to drawing?
500

Another term for owner's equity, the amount by which the business assets exceeds the business liabilities.

What is Capital?
500

What accounts are affected? Bought a computer system for $25,000 at Best Buy. Paid $5,000 in cash, and agreed to pay the balance net 30. 

What is a debit to computer equipment; a credit to cash; a credit to accounts payable?

500
Paid $7,500 with a check from the business for a 12-month insurance policy in advance.

What is a debit to prepaid insurance and a credit to cash?

500
This is the flow of data through a simple accounting system (order of financial information).
What are source documents--->general journal---> general ledger--->worksheet--->financial statements?