Vocabulary
Something of value that is owned with a debit balance.
Asset
The journal used to record payments and payments on account.
Cash Payments Journal
What is the classification and normal balance of Accounts Receivable
Asset and Debit
What is the transaction for the cash payment of rent expense? Indicate what accounts are debited and credited.
Rent Expense is debited and cash is credited
What are the four taxes that employers are required to withhold from an employee's salary/wages?
Social Security, Medicare, Unemployment-Fed, and Unemployment-State
Another name for a debt which has a normal credit balance
Liability
This journal is used to record cash and credit card receipts.
Cash Receipts Journal
What is the classification of Accounts Payable and the normal balance
Liability and Credit
What is the transaction for a payment made on account by Singh Imports with a 2% discount?
Debit Singh Imports, Accounts Payable is debited, Credit Purchases Discount, and Credit Cash
What is the difference between gross earnings and net earnings?
Gross is before deductions
The monetary value of a company
Equity
This journal is used for the transaction of purchasing supplies on account
General Journal
What is the normal balance and classification of Capital?
Owner's Equity and Credit
A sale is made on account to Pacific Stores plus sales tax. What accounts are debited and credited?
Pacific Stores is debited, A/R is debited, Sales is credited, and sales tax is credited.
What name is given to two accounts that control the balances of the Subsidiary Ledgers?
Controlling Accounts
This represents revenue of a company
Sales
This journal is used to debit Vendors and credit sales and sales tax payable
Sales Journal
What is the normal balance and classification of sales?
Revenue and Credit
Credit is granted for merchandise returned to your store by Pacific Stores. What accounts are debited and credited?
Sales Returns and Allowances is debited, Sales
tax payable is debited and A/R and the Vendor are credited.
What type of account is Sales Returns and Allowances other than a Revenue Account?
Contra Account
This term represents the location of all accounts other than Vendor accounts.
General Ledger
This totals for this journal are posted twice; once as a debit to Purchases, and once as a credit to Accounts Payable
Purchases Journal
What is the normal balance and classification of Purchases Returns and Allowances?
Cost of Goods Sold and Credit
Your business returned merchandise to Klein Industries. What accounts are debited and credited?
A/P and Klein Industries are debited, and Purchases Returns and Allowances are credited.
What is the difference between gross earnings and accumulated earnings?
Accumulated earnings is the total of gross earnings