Term
|
Definition
Dr/Bank Loan (L)
Cr/Cash (A) |
|
|
Term
|
Definition
Dr/ Prepaid Rent (A)
Cr/Cash (A) |
|
|
Term
| Purchase of Inventory on Account |
|
Definition
Dr/Inventory (A)
Cr/Accounts Payable (L) |
|
|
Term
|
Definition
2 parts
1. Dr/Cash (A)
Cr/Sales Revenue (SE)
2. Dr/Cost of Goods Sold Expense (SE)
Cr/Inventory (A) |
|
|
Term
| Purchase of Supplies for Cash |
|
Definition
Dr/ Office Supplies (A)
Cr/Cash (A) |
|
|
Term
| Issuance of Shares for Cash |
|
Definition
Dr/Cash
Cr/ Share Capital (SE) |
|
|
Term
| Collections from Customers on Account |
|
Definition
Dr/ Cash (A)
Cr/Accounts Recievable (A) |
|
|
Term
| Payments to Suppliers on Account |
|
Definition
Dr/ Accounts Payable (L)
Cr/Cash (A) |
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|
Term
| Salaries Expense (a. for cash, b. pay later) |
|
Definition
Dr/ Salaries Expense (SE)
Cr/Cash (A) or Salaries Payable (L) |
|
|
Term
| Declarations of Dividends to be Paid Later |
|
Definition
Dr/ Dividends Declared (SE)
Cr/ Dividents Payable (L) |
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|
Term
|
Definition
Dr/ Interest Expense (SE)
Cr/ Interest Payable (L) |
|
|
Term
|
Definition
Dr/Rent Expense (SE)
Cr/Prepaid Rent (A) |
|
|
Term
|
Definition
Dr/Utilities Expense (SE)
Cr/Utilities Payable (L) |
|
|
Term
|
Definition
Dr/Depreciation Expense (SE)
Cr/Accumulated Depreciation (XA) |
|
|
Term
|
Definition
Dr/Insurance Expense (SE)
Cr/Prepaid Insurance (A) |
|
|
Term
|
Definition
Dr/Income Tax Expense (SE)
Cr/Income Tax Payable (L) |
|
|
Term
| Closing Entries (2 parts) |
|
Definition
1. Dr/ALL REVENUES
Cr/ALL EXPENSES
Dr/Retained Earnings (revenues-expenses)
2. Dr/Retained Earnings (SE)
Cr/Dividends Declared (SE) |
|
|
Term
|
Definition
Dr/Wages Payable (L)
Cr/Cash (A) |
|
|
Term
| Acceptance of Notes Recievable |
|
Definition
Dr/ Note Recievable (A)
Cr/Sales Revenue (SE) |
|
|
Term
| Recognition of Interest on Notes Recievable |
|
Definition
Dr/Interest Recievable (A)
Cr/Interest Revenue (SE) |
|
|
Term
| Dividend Revenue (From shares in another Co.) |
|
Definition
Dr/Dividends Recievable (A)
Cr/Dividend Revenue (SE) |
|
|
Term
| Claiming Declared Dividends |
|
Definition
Dr/Cash
Cr/Dividends Recievable (A) |
|
|
Term
| Direct Write off Method for Allowance of Doubtful Accounts |
|
Definition
Dr/Bad Debt Expense (SE)
Cr/Accounts Recievable (A)
*violates matching principal |
|
|
Term
| Estimate % of bad debts (Allowance Method) |
|
Definition
Dr/Bad Debt Expense (SE)
Cr/Allowance for Doubtful Accounts (XA) |
|
|
Term
| Confirmation on % of bad debts (Allowance Method) |
|
Definition
Dr/Allowance for doubtful accounts (XA)
Cr/Accounts Recievable (A) |
|
|
Term
| Recovery of Accounts Recievable when Previously Written OFf |
|
Definition
Dr/Accounts Recievable (A)
Cr/Allowance for doubtful accounts (XA)
Dr/Cash (A)
Cr/Accounts Recievable |
|
|
Term
| Aging Accounts Recievable Method |
|
Definition
(1. Determine estimated AFDA)
Dr/ Bad Debt Expense
Cr/Allowance for Doubtful Accounts (XA) |
|
|
Term
|
Definition
| Cost of Goods Sold/Average Inventory |
|
|
Term
|
Definition
Dr/Advertising Expense (SE)
Cr/Cash (A) |
|
|
Term
|
Definition
Dr/Cash (A)
Dr/Accumulated Amortization (XA)
Cr/Equipment
Cr/Gain on sale of equipment |
|
|
Term
|
Definition
Dr/Amortization Expense (SE)
Cr/Patents (A) |
|
|
Term
|
Definition
(Return on Assets)
=Net income + [Interest Expense x (1-tax rate)]/Average total assets
(must take into account that interest expense is tax deductible) |
|
|
Term
|
Definition
Dr/Loss due to damage of equipment (SE)
Cr/Accumulated Amortization (XA) |
|
|
Term
|
Definition
Dr/Wage Expense (SE)
Cr/Employee Income Tax Payable (L)
Cr/CPP Contribution Payable (L)
Cr/EI Taxes Payable (L)
Cr/CASH (A) |
|
|
Term
| Estimated Warranty Obligation |
|
Definition
Dr/Warranty Expense (SE)
Cr/Est. Warranty Obligation (L) |
|
|
Term
| Warranty is claimed and work is done |
|
Definition
Dr/Est. Warranty Obligation (L)
Cr/Cash (A) |
|
|
Term
|
Definition
Dr/Cash (A)
Cr/Unearned Revenue-gift cards (L) |
|
|
Term
|
Definition
Dr/Unearned Revenue-gift cards (L)
Cr/Sales Revenue (SE)
Dr/Cost of Goods Sold (SE)
Cr/Inventory (A) |
|
|
Term
| Short term notes and interest payable |
|
Definition
Dr/Interest Expense (SE)
Dr/Short Term Note Payable (L)
Cr/Cash (A) |
|
|
