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Worksheet format
Adjustments
Terms
The accounting cycle
Transactions
100
What are the sections of the worksheet?
Trial balance Adjustments Adjusted trial balance Income statement Balance sheet
100
If your prepaid rent expires what account is DR?
Rent expense
100
Amortization is also known as...
Depreciation
100
What is the first step of the accounting cycle?
Analyzing the business transaction
100
Hank started to record a supplies adjustment and then forgot what he was doing. What is the account credited and by how much? DR - Supplies Expense $200
CR - Supplies $200
200
How do you find the adjusted trial balance figures?
Find the new balances by taking the original account amounts from the trial balance and including the adjustments
200
What is the equation to determine amortization?
Amortization = (cost of equipment - residual value)/Est. yrs of usefulness
200
What is book value?
How much the asset actually is worth at that point in time
200
What is the book of original entry?
Journal
200
Wages earned but not yet paid amounted to 64 hours at $15 per hour at month end. What adjustments and by how much need to be made (DR/CR/$)?
DR - Wages Expense $960 CR - Wages Payable $960
300
Which financial statement is not part of the worksheet?
Statement of Owners Equity
300
When adjusting the equipment account for amortization which account is DR and which is CR?
DR - Amortization Expense, Equipment CR - Accumulated Amortization, Equipment
300
What does a contra asset do?
It is an account that reduces the equivalent asset
300
What is the book of final entry?
Ledger
300
The amortization on computer equipment (Historical cost $11,480) is based on the straight-line method, a four year life, and residual value of $1,400. What is the adjustment entries for February?
DR - Amortization Expense, Computer equipment $210 CR - Accumulated Amortization, Computer equipment $210
400
You need to enter an adjustment and the account title is not on the worksheet. What do you do?
Add the account title underneath the totals on the far left column.
400
When is salaries payable used?
When you need to adjust for employees salaries when the month (or accounting period) ends before the pay cheque is given out
400
How does the Historical Cost Principle relate to amortization?
The original cost of an item stays the same in the paper work. Other accounts are created to record the depreciation.
400
In what order are the formal financial statements prepared?
1. IS 2. SOE 3. BS
400
Hank pays his office rent one year in advance. One year is $24,000. He prepares his worksheet each month. What is the adjustments he makes (what accounts, CR, DR, $ amount)?
DR - Rent Expense$2,000 CR - Prepaid Rent $2,000
500
Is a net loss recorded on the DR or CR side of the Income Statement section of the worksheet?
CR
500
True or false: Supplies purchased is $600 and supplies on hand is $100. One of the entries in the adjustment section is Supplies CR $100.
False
500
What is residual value?
Book value of an asset after all the allowable amortization has been deducted. or The amount you estimate to get when you plan on selling the item.
500
List the steps of the accounting cycle from start to end
1. Analyze business transaction 2. Record in Journal 3. Post in ledger 4. Create Trial Balance 5. Complete Worksheet 6. Prepare Financial statements
500
Jess purchased $500 worth of computer supplies. When she took inventory at the end of the month she found she had $300 computer supplies on hand. What account is debited by how much and what account is credit by how much?
DR - Computer supplies expense $200 CR - Computer supplies $200