T Accounts
Paid Cash for Supplies, $350
Cash $350 CS
Supplies $350 DS
What is Money that you earn, or the "in" flow of cash?
Income
What is the Accounting Equation?
Assets = Liabilities + Owners Equity
List three types of Assets
Cash, Accounts Receivable, Inventory, Supplies, Investment
In a T account which side is the debit side?
Left
Bought Supplies, on account, from
Supply Warehouse $2,500
Accounts Payable Supply Warehouse $2,500 CS
Supplies $2,500 DS
___________ represent the wealth or resources owned by an individual or business.
Assets
Your cash T account has a debit balance of $350,000
The following entries are made to your cash T account:
Debit $40,000 Credit $200,000 Credit $7,000, Debit $1500
What is your new Balance?
$184,500
What is the name of the smallest & the largest form of currency in the United States
Penny and 100 Dollar Bill
Snapshot of a business’s financial health at a specific moment.
Balance Sheet
Received Cash for Sales from
Peter's Palace, $900
Cash $900 DS
Sales $900 CS
The value of the business that belongs to the owners. Typically grows as you make profit.
Equity
Your cash T account has a debit balance of $1,200
The following entries are made to your cash T account:
Debit $234, Credit $75, Debit $700, Debit $90
What is your new Balance?
$2,149
What is a typical first transaction for a business?
Investing Cash into the Business
Shows a company's revenues and expenses over a specific period. A financial report card for a business.
Income Statement
Paid Cash for Telephone bill, $470
Cash $470 CS
Utilities, Cellular or Telephone Expense $470 DS
The loss of assets over time.
Depreciation
Your small business has only four T-accounts. One has a Credit balance of $1,299. The other three have debit balances of $322 $412 $565
Are your accounts in balance and if not how much are they off by?
Yes $1,299
What is the name of the currency used in Japan
The Yen
What two T accounts would you use for the following statement:
Paid Cash to Owner for personal use, $250
Cash & Drawing Accounts
Sold Services on account to Berry's Burgers, $800
Accounts Receivable Berry's Burgers $800 DS
Sales $800 CS
__________ is a commercial document that is issued from a buyer to a seller, indicating the type, quantity and agreed upon price for products or services.
Purchase Order PO
Your small business has only four T-accounts. One has a credit balance of $34,888. The other three have debit balances of $23,322 $4,312 $5,675
Are your accounts in balance and if not how much are they off by?
NO $1,579
what are the names of the 3 forms of currency shown $500 £400 €3000
Dollars, Pounds, & Euros
The money generated from normal business operations.
Revenue