VOCAB
What is Not paying right then and there
Record the purchase and receipt of office supplies for $900 on account.
Debit supplies 900, credit AP 900
Apple Inc
Balance sheet
___________
What is At current date
Apple INC.
Income statement
_____________
What is for the whatever period its in
Debits are on the?
Left
What makes an asset or Liability current?
Less than 12 months
Purchased ski supplies for $18,300 on account. Record the transaction
Debit Supplies
Credit AP
How are assets listed on Balance sheet?
Current V non Current, in order of liquidity
What is on the income statement?
Revenues and expenses
What is basic accounting equation?
A= L + SE
What does Long term mean?
Longer than a year
Borrowed $820,000 from the bank on December 1, signing a note payable, due in six months. Record the transaction.
Debit Cash 820,000 Credit NP ST 820,000
How are liabilities listed on Balance sheet?
Current V non Current
What is listed first? Revenues or expenses?
Revenues
What increases each of the 3 main pieces of the acct equation?
A= Debit
L= Credit
SE= Credit
What does "Normal _____ Balance" mean?
Daily lift passes were sold this month for a total of $82,800 cash. Record the transaction.
Cash debit 82800
Credit service revenue
Which side are assets on? Which side are liabilities and SE on?
Assets on the left, Liabilities and SE on right
What is the last line of the income statement?
Net income
What are 3 ways a business can be organized?
Sole Proprietorship, partnership, corporation
What is deferred Revenue?
Paid for but not earned
When are adjusting journal entries made?
At the end of the acct period
Make a Balance sheet skeleton, with the following terms.
Assets, current assets, non current assets, total assets, total current assets, Stockholders equity, total liabilities and Stockholders equity, Liabilities, current Liabilities, Total liabilities, Total current Liabilities.
Assets, Current, total current assets, non current, total assets, Liabilities, Current liabilities, total current liabilities, total liabilities, SE, Total Liabilities + SE
Make an income statement skeleton with the following terms...
Revenues, expenses, total expenses, total revenues, For the year, total expenses, total revenues, net income
For the year, Revenues, total revenues, expenses, total expenses, net income
What is the difference between creditors and investors?
Don't have to pay investors back