Accounting Cycle
Financial Statements
Adjusting and Closing Entries
Accounting Equation
Solve a problem
100
a bookkeeping worksheet in which the balance of all ledgers are compiled into debit and credit account column totals that are equal
What is the trial balance?
100
Only the effects of cash transactions are shown on this statement.
What is the statement of cash flows?
100
These accounts are all closed to retained endings at the end of the year.
What are revenue, expense and dividend accounts?
100
Assets=Liabilities+Owner's Equity
What is the accounting equation?
100
COMPANY has $4000 in assets and $2500 in liabilities. What is the total owner's equity?
$1500
200
This step of the accounting cycle is represented in this image:
What is the general ledger?
200
This statement includes the assets, liabilities and equity of a company
What is the balance sheet?
200
an entry in a company's general ledger that occurs at the end of an accounting period to record any unrecognized income or expenses for the period
What is an adjusting entry?
200
This includes these accounts: accounts receivable, prepaid insurance, buildings, inventory.
What is "assets"?
200
Create the journal entry for this transaction:
COMPANY owes employees $10,000 in salaries. They will pay them in one week.
DR Salary expense $10,000
CR Salaries payable $10,000
300
It initiates the accounting cycle.
What is a transaction?
300
This statement details the various revenues and expenses of a company.
What is the income statement?
300
This would be overstated if I forget to adjust my deferred revenue account.
What is current liabilities? (Revenue and, therefore, equity would be understated.)
300
This includes these types of accounts: common stock, sales revenue, dividends and advertising expense.
What is "owner's (or stockholder's) equity"?
300
Create the journal entry:
COMPANY purchases $600 in inventory. They pay for half now and will pay the rest in a month.
DR Inventory $600
CR Cash $300
CR Accounts Payable $300
400
This is always indented when written in a general journal entry.
What is a credit record?
400
This statement showing net income less dividends is created by many companies, but is not required.
What is the statement of retained earnings?
400
These two accounts are impacted by when I account for rent used from a prepaid account.
What are prepaid rent and rent expense?
400
This includes these notes payable, but not accounts payable.
What is "long-term liabilities"?
400
Company has $100 in supplies on June 1st. They purchase and pay for $40 in supplies June 8th and $25 in supplies June 23rd. On June 30th they have $38 in supplies remaining. What is the journal entry for June 23th?
DR Supplies $25
CR Cash $25
500
the final product of the accounting cycle
What are financial statements?
500
This statement shows users the various capital contributions a company has received.
What is the statement of stockholder's (or owner's) equity?
500
The journal entry accounting for accrued interest expenses includes a credit to this account.
What is interest payable?
500
These accounts are used to determine the retained earnings balance at the end of the year.
What are revenue, expense and dividend accounts?
500
Company has $100 in supplies on June 1st. They purchase $40 in supplies June 8th and $25 in supplies June 23rd. On June 30th they have $38 in supplies remaining. What is the adjusting entry for June 30th?
DR Supplies Expense $127
CR Supplies $127