a long-term note payable is used to pay off several smaller obligations
What is Liabilities increase, liabilities decrease
100
signifies left, as in left-hand side of an account
What is Debit
100
for recurring, frequent transactions, replace the general journal for specific types of entries (purchases on account, sales on account, cash receipts, cash disbursements)
What is Special journals
100
the cost of direct materials on hand; increases when direct materials are purchased; decreases when direct materials are issued into production
What is Direct materials inventory
200
supplies are purchased on account
What is Assets increase, liabilities increase
200
a bill for utilities is received but not yet paid
What is Liabilities increase, owners’ equity decrease
200
signifies right, as in right-hand side of an account
What is Credit
200
for recording details for specific general ledger accounts, provides support, but does not replace the general ledger account (accounts payable, accounts receivable, inventory)
What is Subsidiary ledgers
200
he cost of products started, but not completed; increases when direct materials and direct labor are used in production and when manufacturing overhead is assigned to production; decreases when goods are finished and transferred out (cost of goods manufactured)
What is Work-in-process inventory
300
customer is billed for services provided
What is Assets increase, owners’ equity increase
300
an obligation to a customer is met
What is Liabilities decrease, owners’ equity increase
300
Assets increase, assets decrease: cash is used to purchase supplies
What is DR supplies
CR cash
300
inventory purchased to be resold
What is Merchandising
300
the cost of products finished, but not sold; increases when goods are finished and transferred in; decreases when goods are sold (cost of goods sold)
What is Finished goods inventory
400
supplies previously purchased on account are paid for
What is Assets decrease, liabilities decrease
400
cash is used to purchase supplies
What is Assets increase, assets decrease
400
Assets increase, liabilities increase: supplies are purchased on account
What is DR supplies
CR accounts payable
400
inventory purchased to be used in production
What is Manufacturing
400
what is lifo
What is Last-in, first-out
500
supplies are used in the business
What is Assets decrease, owners’ equity decrease
500
Assets = Liabilities + Owners’ Equity
What is accounting equation
500
Assets increase, owners’ equity increase: customer is billed for services provided
What is DR accounts receivable
CR fees earned
500
determines ending inventory and cost of goods sold at the end of the period.