GAAP, Business Structure, and the Accounting Cycle
1. Analyzing business transactions
2. Journalizing
3. Posting
4. Trial balance
5. Journalize and post adjusting entries
6. Prepare financial statements
7. Journalize and post-closing entries
8. Prepare post-closing trial balance
What are the steps of the accounting cycle?
The overtime rate required by law for wage workers.
What is one and a half times the regular rate?
The source documents related to sales and cash receipt journal entries.
What are sales invoice, cash register tape, and receipts?
The source documents related to purchases and cahs payments.
What are checks and purchase invoices?
The normal balance of Allowance for Uncollectible Accounts.
What is a Credit Balance
The standards and rules that accountants follow while recording and reporting financial activities
What is Generally Accepted Accounting Principles
The required deductions on employee payroll.
What are federal, state, social security, and Medicare taxes?
The subsidiary ledger used to record sales made on various accounts.
What is the accounts receivable ledger?
The subsidiary ledger that is used to record balances due to vendors for purchases made on account.
What is the accounts payable ledger?
The two methods of estimating uncollectible accounts.
What are the percentage of sales method and the accounts receivable aging method?
The value of all merchandise sold during a period.
This item is included on the income statement of a merchandising company that is not included on the income statement of a service business.
What is cost of goods sold?
The employer payroll taxes.
What are medicare, social security, unemployment state, and unemployment federal?
What is sales tax?
The two types of inventory systems.
What are periodic and perpetual?
A method for calculating depreciation.
The straight-line depreciation method.
The three main business structures.
What are sole proprietorship, partnership, and corporation?
The payroll journal entry is based on these totals of the payroll register.
What are total earnings, the deduction columns, and net pay?
A cash discount on a sale taken by the customer.
What is a sales discount?
The total of an accounts payable ledger trial balance should equal the total of this general ledger account.
What is accounts payable?
The annual depreciation for an asset with an original value of $6000 a salvage value of $400 and an estimated useful life of 7 years.
What is $800?
The three main business types.
What are service, manufacturing, and merchandising?
An employee's earnings subject to unemployment taxes are referred to as this.
What are FUTA earnings?
When a buyer sends a product back for a full or partial refund it is a ______ ___________ and when they contact the company about a minor but noticeable defect and want a discount it is a __________ ___________.
What is a sales return and a sales allowance?
The term of sale 2/15 N/30 means this.
What is a 2% discount if paid in the first 15 days or the net amount is due within 30 days.
Date Purchase: Aug 3, 2001
Original Cost $500
Salvage Value $ 200
Est. Useful Life 2 Years
The annual depreciation in years 1, 2, and 3
What is Year 1 $62.50, Year 2 $150, and Year 3 $87.50