# Shared Flashcard Set

## Details

accounting
accounting unit 2
40
Accounting
12/14/2011

Term
 the Income Statement credit total is \$1,200 and the Income Statement debit total is \$800. The company has a
Definition
 Net income of \$400
Term
 Mike is posting journal entries to the General Ledger. He has just calculated the new account balance in the credit column for Sales. What is the NEXT step in the posting procedure?
Definition
 Record the account number that the entry was posted to in the journal in the post reference column
Term
 RECEIVED CASH ON ACCOUNT FROM BILL'S LIMOS FOR, \$500
Definition
 Debit Cash and credit Accounts Receivable/Bill's Limos
Term
 A journal's column totals are General Debit, \$500; General Credit, \$200; Sales Credit, \$350; Cash Debit, \$1,000; Cash Credit, \$950. This means that the
Definition
 Journal proves.
Term
 William has almost finished updating the Supplies account at the end of the month. He has transferred all of the information in the General Journal to the General Ledger. What is the LAST step for William to do?
Definition
 Record an account number in the journal.
Term
 The ABC Manufacturing Company's Income Statement worksheet shows total debits of \$600 and total credits of \$750. ABC Manufacturing Company has a:
Definition
 Net income of \$150.
Term
 Samuel was asked to prepare a financial statement to determine whether or not the costs of doing business exceeded the revenue during the past year. What is the LAST Samuel will do in preparing this statement?
Definition
 Calculate the component percentages
Term
 When preparing an Income Statement, after all account total debits and credits are entered correctly, verified and totaled, what is the next step?
Definition
 Double rule across both amount columns
Term
 When he applied for a bank loan, Robert was asked by the bank to develop a financial statement that would show the financial health of his business as of March 31. What is the FIRST step Robert will do to prepare this statement?
Definition
 Write the name of the company.
Term
 On a worksheet, the Income Statement credit total is \$2,150 and the Income Statement debit total is \$2,400. The company has a:
Definition
 Net loss of \$250.
Term
 Mary is preparing a Balance Sheet. What must she do after she completes the heading information?
Definition
 Prepare the Asset section.
Term
 John is preparing an Income Statement. He has written the titles of each expense account in the Expenses Section. What should John do NEXT?
Definition
 Write the balance of each expense account.
Term
 If the beginning prepaid insurance balance is \$2,000, and the ending value of the insurance is \$800, the correct adjustment on the work sheet is to debit:
Definition
 Insurance Expense and credit Prepaid Insurance \$1,200
Term
 If the beginning supplies balance is \$1,800, and the ending supplies balance is \$300, the correct adjustment on the work sheet is to debit:
Definition
 Supplies Expense and credit Supplies \$1,500
Term
 If the beginning supplies balance is \$2,200, and the ending supplies balance is \$700, the correct adjustment on the work sheet is to debit:
Definition
 Supplies Expense and credit Supplies \$1,500.
Term
 What is the correct journal entry for the transaction, RECEIVED CASH FROM SALES, \$250
Definition
 Debit Cash and credit Sales
Term
 PAID CASH FOR AN OFFICE DESK, \$250
Definition
 Debit Office Equipment and credit Cash
Term
Definition
 Debit Advertising Expense and credit Cash
Term
Definition
 Debit Advertising Expense and credit Cash
Term
 PAID CASH FOR A DELIVERY (MISCELLANEOUS EXPENSE), \$25?
Definition
 Debit Miscellaneous Expense and credit Cash
Term
 PAID CASH FOR PRINTER CARTRIDGES?
Definition
 Debit Supplies and credit Cash
Term
 A journal's column totals are General Debit, \$500; General Credit, \$200; Sales Credit, \$750; Cash Debit, \$1,000; Cash Credit, \$600. This means that the:
Definition
 Journal does not prove.
Term
 Bill James discovered that a transaction for Utilities Expense was journalized and posted in error as a debit to Repair Expense, \$250. What is the entry to correct the error?
Definition
 Debit Utilities Expense, \$250; credit Repairs Expense, \$250
Term
 James discovered that a transaction for an Advertising Expense was journalized and posted in error as a debit to Miscellaneous Expense, \$200. What is the entry to correct the error?
Definition
 Debit Advertising Expense, \$200; credit Miscellaneous Expense, \$200
Term
 RECEIVED CASH ON ACCOUNT FROM BILL'S LIMOS FOR, \$500?
Definition
 Debit Cash and credit Accounts Receivable/Bill's Limos
Term
 RECEIVED CASH ON ACCOUNT FROM BURKE SUPPLY FOR, \$800?
Definition
 Debit Cash and credit Accounts Receivable/Burke Supply
Term
 BOUGHT SUPPLIES ON ACCOUNT FROM STEINMAN COMPANY, \$75?
Definition
 Debit Supplies and credit Accounts Payable/Steinman Company
Term
 BOUGHT SUPPLIES ON ACCOUNT FROM JONES SUPPLY COMPANY, \$250?
Definition
 Debit Supplies and credit Accounts Payable/Jones Supply Company
Term
 PAID CASH FOR RENT, \$1000?
Definition
 Debit Rent Expense and credit Cash
Term
 PAID CASH TO MARK JOHNSON, OWNER FOR PERSONAL USE, \$900?
Definition
 Debit Mark Johnson, Drawing and credit Cash
Term
 PAID CASH FOR RENT, \$700?
Definition
 Debit Rent Expense and credit Cash
Term
 PAID CASH TO JOHN SMITH, OWNER FOR PERSONAL USE, \$500?
Definition
 Debit John Smith, Drawing and credit Cash
Term
 PAID CASH ON ACCOUNT TO AVIS SUPPLY COMPANY, \$500?
Definition
 Debit Accounts Payable/Avis Supply Company and credit Cash
Term
 PAID CASH ON ACCOUNT TO VENDOR JONES SUPPLY, \$1000?
Definition
 Debit Accounts Payable/Jones Supply and credit Cash
Term
Definition
 Debit Cash and credit Sales
Term
Definition
 Debit Cash and credit Rental Fees
Term
 PAID THE TELEPHONE BILL, \$125?
Definition
 Debit Utilities Expense and credit Cash
Term
 HANS SCHMIDT INVESTED \$2000 OF HIS OWN MONEY INTO THE BUSINESS?
Definition
 Debit Cash and credit HANS SCHMIDT, Capital
Term
 PAID THE GAS BILL, \$125?
Definition
 Debit Utilities Expense and credit Cash
Term
 RECEIVED CASH FROM OWNER DANA JACKSON AS INVESTMENT, \$5000?
Definition
 Debit Cash and credit Dana Jackson, Capital
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