adjusting entries
the accounting equation
financial statements
journal entries
mystery
operating, financing or investing activities
100
What account will you NEVER see in an adjusting entry (30 seconds)
cash
100
What is the accounting equation
Assets = Liabilities + Equity.
100
Which financial statement reports assets, liabilities, and equity at a specific date?
Balance Sheet
100
True or False — Every journal entry must balance (total debits = total credits)
true.
100
what is the name of KSU's mascot?
scrappy the owl?
100
Paying salaries to employees is what type of activity?
operating
200
Rent of $1,200 was received in advance for 6 months. At the end of the first month, what adjusting entry is needed?
(1 minute)
Debit Unearned Rent $200; Credit Rent Revenue $200.
200
If a company borrows $10,000 from the bank, how does the accounting equation change?
Assets increase $10,000 (cash); Liabilities increase $10,000 (notes payable).
200
If a company has revenues of $50,000 and expenses of $30,000, what is net income?
20,000
200
Which side (debit or credit) increases liabilities?
credit
200
Company pays $12,000 cash for 12 months of rent on Oct 1. What is the Dec 31 adjusting entry?
Debit Rent Expense $3,000; Credit Prepaid Rent $3,000.
200
Paying dividends to shareholders is what type of activity?
financing
300
At Dec 31, employees are owed $2,000 in wages not yet paid. What adjusting entry is needed?
Debit Salaries Expense $2,000; Credit Salaries Payable $2,000.
300
A business pays $800 cash for utilities expense. How does this affect the accounting equation?
Assets decrease $800 (cash); Equity decreases $800 (expense reduces retained earnings).
300
what is the formula for retained earnings?
beginning retained earnings + net income -dividends = retained earnings for the year
300
Record the journal entry: A business receives $1,000 cash from customers for services performed.
Debit Cash $1,000; Credit Service Revenue $1,000
300
If total assets = $90,000, liabilities = $30,000, and equity = $60,000, what are the new balances if the company pays off $10,000 of liabilities with cash?
assets= 80,000
liabilities= 20,000
stockholders' equity= 60,000 (no change)
300
Purchasing land for a new factory is what type of activity?
investing
400
A company bought $6,000 of supplies during the year. At year-end, $1,500 remain. What is the adjusting entry?
Debit Supplies Expense $4,500; Credit Supplies $4,500.
400
assets increase by $2,000, and stockholders equity increases by $2,000
create a scenario where the accounting equation has this effect?
do we agree?
400
create a scenario for operating, investing, and financing activities.
the class will vote if they think you are correct or not
do we agree?
400
Record both journal entries:
A business pays $800 for rent for the current month
A business pays $800 for 4 months of rent
1. debit rent expense, credit cash
2. debit prepaid rent, credit cash
400
What accounting club is Mellayne a part of?
NABA
400
A company reports the following cash flows
paid $8,000 rent, borrowed $40,000, purchased land for $25,000, paid $2,000 dividends.
Classify each and determine the cash flow (inflow or outflow)
Rent = Operating (outflow, -8,000); Borrowing = Financing (inflow, +40,000); Land = Investing (outflow, –25,000); Dividends = Financing (outflow, –2,000).
500
A company paid $2,400 for a 12-month insurance policy starting Oct 1. What adjusting entry is needed at Dec 31?
Debit Insurance Expense $600; Credit Prepaid Insurance $600.
500
If assets = $200,000, liabilities = $80,000, and equity consists of common stock = $90,000, what is retained earnings?
Retained earnings = $30,000.
500
If ending retained earnings = $40,000, beginning retained earnings = $30,000, and dividends = $5,000, how much was net income?
formula: beginning retained earnings + net income - dividends = ending retained earnings
answer: 15,000
500
Answer the following questions
1. On March 21, Yellow Consulting provides $3,500 of services on account to Blue Records, record the journal entry
2. On May 17th, they receive $2,500 cash from Blue records, record the journal entry
3. Assuming these were the only transactions for the month, what is the ending balance in accounts receivable?
1. debit accounts receivable $3,500, credit service revenue $3,500
2. debit cash $2,500, credit accounts receivable $2,500
3. accounts receivable ending balance = $1,000
500
What school did Kennesaw beat in Football last weekend?
Arkanas State
500
A company had the following transactions?
Collected $50,000 from customers, paid $10,000 salaries, paid $5,000 interest, sold land for $20,000.
Classify each transaction and compute net cash from operating activities.
(hint: consider the inflows and outflows of cash)
Collect = Operating (+50,000)
Salaries = Operating (–10,000);
Interest = Operating (–5,000);
Land = Investing (+20,000).
Net Operating = +35,000.