# Shared Flashcard Set

## Details

unit 2 accounting 1
study guide
67
Accounting
12/13/2011

Term
 On a worksheet, 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
 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
 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
 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 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
Definition
 Write the name of the company.
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
 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
 Mary is preparing a Balance Sheet. What must she do after she completes the heading information
Definition
 Prepare the Asset section.
Term
 Mary is preparing a Balance Sheet. What must she do after she completes the Assets section?
Definition
 Prepare the Liability section
Term
 Mary is preparing a Balance Sheet. When she completes the Owner's Equity Section, what should the end result be
Definition
 The Total Assets should equal Total Liabilities plus Owner's Equity
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
 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 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 prepaid insurance balance is \$3,400, and the ending value of the insurance is \$1,200, the correct adjustment on the work sheet is to debit
Definition
 Insurance Expense and credit Prepaid Insurance \$2,200
Term
 In Scenario 2.02 B, what is the component percentage for Rent Expense
Definition
 12%
Term
 In Scenario 2.02 B, what is the component percentage for Utilities Expense
Definition
 2.3%
Term
 In Scenario 2.02 B, what is the component percentage for Total Expenses
Definition
 46.3%
Term
 In Scenario 2.02 B, what is the component percentage for Net Income
Definition
 53.7%
Term
 Sam is preparing an Income Statement from the Work Sheet in Group Material 2.02 C. What is the component percentage for Total Expenses
Definition
 66.7%
Term
 Sam is preparing an Income Statement from the Work Sheet in Group Material 2.02 C. What is the component percentage for Net Income?
Definition
 33.3%
Term
 Sam is preparing a Balance Sheet from the Work Sheet in Group Material 2.02 C. What are the Total Assets for the Balance Sheet? (NCCTE.9_12.BE.6311.CA02.02)
Definition
 \$2,900
Term
 Sam is preparing a Balance Sheet from the Work Sheet in Group Material 2.02 C. What are the Total Liabilities for the Balance Sheet?
Definition
 \$975
Term
 In Figure 3.03 R, what is the extension of Federal Income Tax Payable after adjustments?
Definition
 \$3,050 in the Balance Sheet Credit column
Term
 In preparing adjustment entries for his company, Steve has written "Insurance Expense" in the Account Title column. What will he do NEXT?
Definition
 Record the debit amount in the General Debit column
Term
 Michael is preparing the closing entries for his company. He has closed all the income statement accounts that have a credit balance. What is the NEXT step that he will perform?
Definition
 Journalize an entry to close income statement accounts that have a debit balance
Term
 Mary is preparing the closing entries for her company. After she has closed the Income Summary account, what will she do NEXT?
Definition
 Journalize an entry to close the owner's drawing account
Term
 Steve is preparing the Post-Closing Trial Balance. After he has written "Post Closing Trial Balance" in the heading section, what will he do NEXT?
Definition
 Write the account titles of all general ledger accounts that have balances in the Account Title column
Term
 Adam is preparing the Post-Closing Trial Balance. He has recorded all the account balances in the correct column. What will he do NEXT?
Definition
 Rule a single line below the last amount in each column
Term
 James is closing the income summary account. His company had a net income of \$900. The correct journal entry is to debit:
Definition
 Income Summary, and credit Owner's Equity, \$900.
Term
 Mary is closing the income summary account. Her company had a net loss of \$2,000. The correct journal entry is to debit:
Definition
 Owner's equity, and credit Income Summary, \$2,000
Term
 The owner's drawing account has a balance of \$275. The correct entry to close the drawing account would be to debit:
Definition
 Owner's equity account, credit drawing account for \$275
Term
 When closing the Advertising Expense account, debit:
Definition
 Income Summary and credit Advertising Expense
Term
 What is the correct journal entry for the transaction, PAID CASH FOR COMPUTER PAPER?
Definition
 Debit Supplies and credit Cash
Term
 What is the correct journal entry for the transaction, PAID CASH FOR PRINTER CARTRIDGES?
Definition
 Debit Supplies and credit Cash
Term
 What is the correct journal entry for the transaction PAID CASH FOR MISCELLANEOUS EXPENSE, \$400?
Definition
 Debit Miscellaneous Expense and credit Cash
Term
 What is the correct journal entry for the transaction PAID CASH FOR A DELIVERY (MISCELLANEOUS EXPENSE), \$25?
Definition
 Debit Miscellaneous Expense and credit Cash
Term
 What is the correct entry for the transaction, PAID \$150 FOR ADVERTISING?
Definition
 Debit Advertising Expense and credit Cash
Term
 What is the correct entry for the transaction, PAID CASH FOR NEWSPAPER ADVERTISEMENT, \$200?
Definition
 Debit Advertising Expense and credit Cash
Term
 What is the correct journal entry for the transaction, PAID CASH FOR AN OFFICE DESK, \$250
Definition
 Debit Office Equipment and credit Cash
Term
 What is the correct journal entry for the transaction, RECEIVED CASH FROM SALES, \$250?
Definition
 Debit Cash and credit Sales
Term
 What is the correct journal entry for the transaction, RECEIVED CASH FROM SALES, \$150
Definition
 Debit Cash and credit Sales
Term
 What is the correct journal entry for the transaction, RECEIVED CASH FROM SALES, \$150
Definition
 Debit Cash and credit Sales
Term
 What is the correct journal entry for the transaction, PAID CASH FOR INSURANCE, \$200?
Definition
 Debit Prepaid Insurance and credit Cash
Term
 What is the correct journal entry for the transaction, PAID CASH FOR INSURANCE, \$400?
Definition
 Debit Prepaid Insurance and credit Cash
Term
 What is the correct journal entry for the transaction, PAID CASH FOR REPAIRS, \$95?
Definition
 Debit Repair Expense and credit Cash
Term
 What is the correct journal entry for the transaction, PAID CASH TO REPAIR OFFICE EQUIPMENT, \$250?
Definition
 Debit Repair Expense and credit Cash
Term
 What is the correct journal entry for the transaction, RECEIVED CASH FROM OWNER DANA JACKSON AS INVESTMENT, \$5000?
Definition
 Debit Cash and credit Dana Jackson, Capital
Term
 What is the correct entry for the transaction, HANS SCHMIDT INVESTED \$2000 OF HIS OWN MONEY INTO THE BUSINESS?
Definition
 Debit Cash and credit HANS SCHMIDT, Capital
Term
 What is the correct journal entry for the transaction, PAID THE GAS BILL, \$125?
Definition
 Debit Utilities Expense and credit Cash
Term
 What is the correct journal entry for the transaction, PAID THE TELEPHONE BILL, \$125?
Definition
 Debit Utilities Expense and credit Cash
Term
 What is the correct journal entry for the transaction, RECEIVED CASH FROM SALES, \$2500?
Definition
 Debit Cash and credit Sales
Term
 What is the correct journal entry for the transaction, PAID CASH ON ACCOUNT TO VENDOR JONES SUPPLY, \$1000?
Definition
 Debit Accounts Payable/Jones Supply and credit Cash
Term
 What is the correct journal entry for the transaction, PAID CASH ON ACCOUNT TO AVIS SUPPLY COMPANY, \$500?
Definition
 Debit Accounts Payable/Avis Supply Company and credit Cash
Term
 What is the correct journal entry for the transaction, PAID CASH TO JOHN SMITH, OWNER FOR PERSONAL USE, \$500
Definition
 Debit John Smith, Drawing and credit Cash
Term
 What is the correct journal entry for the transaction, PAID CASH TO MARK JOHNSON, OWNER FOR PERSONAL USE, \$900
Definition
 Debit Mark Johnson, Drawing and credit Cash
Term
 What is the correct journal entry for the transaction, PAID CASH FOR RENT, \$700?
Definition
 Debit Rent Expense and credit Cash
Term
 What is the correct journal entry for the transaction, PAID CASH FOR RENT, \$1000?
Definition
 Debit Rent Expense and credit Cash
Term
 What is the correct journal entry for the transaction, BOUGHT SUPPLIES ON ACCOUNT FROM STEINMAN COMPANY, \$75?
Definition
 Debit Supplies and credit Accounts Payable/Steinman Company
Term
 What is the correct journal entry for the transaction, BOUGHT SUPPLIES ON ACCOUNT FROM JONES SUPPLY COMPANY, \$250?
Definition
 Debit Supplies and credit Accounts Payable/Jones Supply Company
Term
 What is the correct journal entry for the transaction, RECEIVED CASH ON ACCOUNT FROM BURKE SUPPLY FOR, \$800?
Definition
 Debit Cash and credit Accounts Receivable/Burke Supply
Term
 What is the correct journal entry for the transaction, RECEIVED CASH ON ACCOUNT FROM BILL'S LIMOS FOR, \$500
Definition
 Debit Cash and credit Accounts Receivable/Bill's Limos
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
 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
 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
 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
 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
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