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Chapter 7
Chapter 8
Chapter 9
Mixed 1
Mixed 2
100
What items will you find on the bank side of the bank reconciliation?
Deposits in transit, Outstanding checks, and bank Errors
100
What is the journal entry to record a sale on account and to collect cash on account?
1. DR. Accounts receivable CR. Sales revenue 2. DR. Cash CR. Accounts receivable
100
What is the Acquisition cost of a purchased asset? give 2 examples
costs that are reasonable and necessary to acquire the asset, - purchase price - real estate commissions and fees - taxes - transportation costs - insurance during transit - installation costs
100
What are land costs and what are land improvement costs? (Name 3 for each) Are they subject to depreciation?
*Land Costs: Not subject to depreciation Purchase price, Real estate agent, commissions, legal fees, costs of preparing the land for its intended use, including tearing down an existing structure; *Land improvement costs: Subject to depreciation fencing, paving, sprinkler systems, lighting, signs,
100
How do you find book value?
Book value = Cost - accumulated depreciation
200
What items are found on the Book side of the bank reconciliation?
Interest revenue, Service charges, EFT receipts, EFT Payments, NSF checks, Bank collections, and book Errors
200
Journal entry to record bad debt expense and establish the allowance account
DR. Bad debt expense CR. Allowance for bad debts
200
What is the journal entry to record depreciation expense?
DR. Depreciation expense CR. Accumulated depreciation
200
What is the journal entry to record debit and credit card sales using the net method?
DR. Cash DR. Credit card expense (Sale Price * Processing fee) CR. Sales Revenue
200
What is the journal entry to record credit and debit card sales using the gross method?
1. DR. Cash CR. Sales revenue 2. DR. Credit card expense (Sale price * Processing fee) CR. Cash
300
What gets ADDED to the bank balance and what gets SUBTRACTED from the bank balance?
Add deposits in transit, Subtract outstanding checks, +/- corrections of the bank errors
300
What is the journal entry to identify a bad debt and write off the account receivable?
DR. Allowance for bad debt (uncollectible accounts) CR. Accounts receivable
300
How do you calculate depreciation expense under the straight line method?
straight line depreciation = (Cost - residual value)/ useful life
300
What is the balance sheet presentation of accounts receivable and allowance for uncollectible accounts?
Current Assets: Accounts receivable, net of allowance for uncollectible accounts or Accounts receivable Less: Allowance for uncollectible accounts Accounts receivable, net
300
What pattern do you notice when you journalize items that are on the BOOK side of the Bank Reconciliation? (HINT- think about how you journalize items that are added to the book side and subtracted to the book side- what happens to cash?)
The items added to the book side of the reconciliation have debits to cash. The items subtracted to the book side of the reconciliation are credited to cash.
400
What gets ADDED to the book balance and what gets SUBTRACTED from the book balance?
Add bank collections, interest revenue, and EFT receipts; Subtract service charges, NSF checks, and EFT payments, +/- corrections of book errors
400
What is the journal entry to recover previously written off account?
1. DR. Accounts receivable CR. Allowance for uncollectible accounts 2. DR. Cash CR. Accounts receivable
400
What are Capital Expenditures? Name 2 Where are they reported?
-purchase price -all other costs to acquire and ready the asset for intended use -costs that increase the asset's capacity or efficiency -costs that extends the asset's useful life; Capital Expenditures are reported on the balance sheet as an asset and debited to the plant asset account
400
What are building costs for constructing a building and purchasing an existing building? Name 2 each
Constructing a building: architectural fees, building permits, contractor charges, payments for material, labor, and miscellaneous costs; Purchasing an existing building: purchase price, costs to renovate the building to ready the building for use, which may include any of the charges listed under "constructing a building"
400
What are revenue expenditure costs? Name 2 Where are they reported?
-costs incurred to maintain the asset in working order -ordinary repairs and maintenance -incurred after the asset is place in service; revenue expenditures are debited to an expense account and reported on the income statement.
500
What are the journal entries that are required for items on the book side of the bank reconciliation? Added to the book balance: 1. Bank collections- ex. note receivable 2. Interest Revenue 3. EFT RECEIPTS Subtracted from the book balance: 4. Service charges 5. NSF checks 6. EFT PAYMENTS- ex. utilities
1. DR. Cash CR. Note Receivable 2. DR. Cash CR. Interest Revenue 3. DR. Cash CR. Accounts Receivable 4.DR. Miscellaneous Expense or Bank Service charge expense CR. Cash 5. DR. Accounts Receivable CR. Cash 6. DR. Utilities expense CR. Cash
500
What is the calculation of the net realizable value of account receivable?
NRV= Accounts receivable - allowance for uncollectible accounts
500
How do you compute the gain or loss on the disposal of the asset? How do you know if you have a gain or a loss?
Cash received from sale - book value = gain or loss; Cash received from sale > book value = gain; Cash received from sale < book value = Loss
500
How do you journalize a gain on the disposal of the asset? use machine as an example
DR. Cash DR. Accumulated depreciation CR. Asset being disposed of ex. machine CR. gain on sale of machine
500
How do you journalize the loss on the disposal of the asset? use machine as an example
DR. Cash DR. Accumulated depreciation DR. Loss on sale of machine CR. machine