Show:
Closing Entries
Deferred
Accrued
Adjusting Entries
MISC
100
What is debited to close dividends?
Retained Earnings
100
What type of accounts are prepaid rent/insurance?
Assets
100
What is the entry for an accrued expense?
Dr-Expense Cr-Liability (payable)
100
When do you adjust entries?
At the end of the accounting period.
100
What is GAAP stand for?
Generally Accepted Accounting Principles
200
What is the entry to close Revenue?
DR-Sales CR-Income Summary
200
What is the transaction for a prepaid expense?
Dr-Insurance Expense Cr-Prepaid Insurance
200
What is entry for payment of accrued expenses the following year?
Dr-Salaries Payable (for days in previous year) Dr-Salaries Expense (for days in current year) Cr-Cash (for all the days)
200
Why do you adjust a journal entry?
To bring an asset or liability account to its proper amount and update the related expense or revenue account.
200
What is cash basis accounting?
Accounting when revenue is recognized when cash is received, expenses are recognized when cash is paid.
300
DR-Income Summary Cr-Expenses
What is the entry to close all expenses?
300
What is type of account is Accumulated Depreciation?
A contra account.
300
What is entry for revenues earned but not yet recorded or received?
Dr-Asset (receivable) Cr-Revenue
300
What is an unadjusted trial balance?
List of accounts and balances before adjustments.
300
What is Accrual Basis Accounting?
Accounting when you record revenue when earned and expenses when incurred.
400
Is income summary a temporary or permanent account?
temporary
400
What is the transaction for Accumulated Depreciation?
Dr-Depreciation Expense Cr-Accumulated Depreciation
400
What is the entry for receipt of Accrued Revenues?
Dr-Cash Cr-A/R (days is previous year) Cr-Revenue (days in present year)
400
What is the Post-closing trial balance sheet?
List of permanent accounts and their balances after closing entries.
400
What happens to the current period revenue and income when you record revenue late? (Use Overstate or Understate)
It Understates current period revenue and income.
500
What is entry to close Income Summary and transfer net loss into Retained Earnings?
DR-R/E CR-Income Summary
500
What is the transaction for unearned revenue-cash received in advance of providing a service?
Dr-Unearned Revenue Cr-Revenue
500
What are accrued expenses?
Costs incurred but are unpaid and unrecorded.
500
List the accounting cycle in order?
Analyze transactions, journalize, post, prepare unadjusted trial balance, adjust, prepare adjusted trial balance, prepare statements, close, prepare post-closing trial balance.
500
What is included in the Classified balance sheet?
Current Assets, Long-term investments, Plant Assets, Intangible Assets, Current liabilities, Long-term liabilities, and Equity.