Definitions
Accounting time periods that are less than one year long, such as a month or a quarter of a year.
What are Interim Periods.
What is a Fiscal Year?
A twelve-month accounting period adopted by businesses.
When preparing a trial balance, we need to be sure our ____ equal our _____.
What are Debits and Credits.
Accumulated Depreciation is what type of account?
What is a Contra Asset Account.
The supplies were counted and costed out. There are $195 of office supplies remaining. Prepare the adjusting journal entry.
DR: Supplies Expense $195
CR: Supplies $195
Expenses incurred but not yet paid in cash or recorded.
What are Accrued Expenses.
What is Accrual Basis Accounting?
A basis in accounting in which revenues are recorded when earned and expenses are recorded when incurred.
What accounts are associated with accruals?
What are Revenue and Expense accounts.
One Year of depreciation will _________ the contra asset account, Accumulated Depreciation-Vehicle.
What is Increase.
Victor bought a forklift for delivering hot tubs. Victor bought the forklift for $30,000. The estimated depreciation is 5 years for the forklift. Calculate the annual depreciation.
What is 6000 per year.
The allocation of the cost of a long-lived asset to expense over its useful life in a rational and systematic manner.
What is Depreciation.
What is the Principle Amount?
What is the amount borrowed or the amount still owed, not including interest.
What are the adjusting entries for prepaid expenses?
What are debit expenses, credit assets or contra assets.
How do you calculate depreciation?
what is divide the cost of the asset by its useful life.
Prepare the entry for the following: The year-end is Dec 31, 2021. Victor paid $ 2,196 for 12 months of insurance coverage on June 1, 2021.
Insurance Expense $1,281, Prepaid Insurance $1,281
A basis for accounting in which revenue is recorded when cash is received and an expense is recorded when cash is paid.
What is Cash Basis Accounting.
What is the Useful life?
What is the length of service of a depreciable asset.
What adjusting entry would be used when cash is received or paid in the future and recorded then?
What is Accruals.
The college bought a vehicle for $14,400, its estimated life is 48 months. Calculate the depreciation of the vehicle.
What is 300 per month.
Prepare the journal entry for the following: On December 1, 2021, Victor collected $ 33,000 for consulting services to be performed evenly from December 1, 2021, through March 31, 2022.
Unearned Revenue $8,250, Service Revenue $8,250
The principle that provides guidance about when to record revenue. In general, it is recorded when the performance obligation has been satisfied; that is, the service has been performed or the goods sold and delivered.
What is the Revenue Recognition Principle.
The difference between the cost of any depreciable asset and its accumulated depreciation is called what?
What is the Carrying amount.
We Make these transactions and events that extend over more than one period.
What are Adjusting Entries.
FREE 500 POINTS
so brave!!!
Victors Hot tub Delivery company has a note receivable on Nov 30th, 2021, its year-end. It is a 30,000$ 4 Month, 5% note issued August 1st, 2021. Calculate the accrued interest.
What is $500.