# Shared Flashcard Set

## Details

Unit 2 Accounting 1 Review
unit 2 review
40
Accounting
12/14/2011

## Additional Accounting Flashcards

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
 3. 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
 5. 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
 6. 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
 14. 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
 Jackson Company has Sales of \$7,500. The company has the following expenses: Advertising Expense - \$1,300 Insurance Expense - \$850 Rent Expense - \$900 Supplies Expense - \$250 Utilities Expense - \$175
Definition
Term
 In Scenario 2.02 B, what is the component percentage for Rent Expense? (NCCTE.9_12.BE.6311.CA02.02)
Definition
 12%
Term
 16. In Scenario 2.02 B, what is the component percentage for Utilities Expense?
Definition
 2.3%
Term
 17. In Scenario 2.02 B, what is the component percentage for Total Expenses?
Definition
 46.3%
Term
 18. In Scenario 2.02 B, what is the component percentage for Net Income?
Definition
 53.7%
Term
 23. On the last day of April, Jack prepared the adjusting entries for his company. He has written "Adjusting Entries" in the Account Title column and recorded April 30 in the date column. What will Jack do NEXT?
Definition
 Write the title of the account debited in the Account Title column
Term
 24. 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
 25. 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
 27. 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
 28. 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
 29. 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
 30. 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
 31. 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
 32. When closing the Advertising Expense account, debit:
Definition
 Income Summary and credit Advertising Expense
Term
 33. What is the correct journal entry for the transaction, PAID CASH FOR COMPUTER PAPER?
Definition
 Debit Supplies and credit Cash
Term
 34. 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 AN OFFICE DESK, \$250?
Definition
 Debit Office Equipment 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 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, RECEIVED BIKE RENTAL FEES, \$375?
Definition
 Debit Cash and credit Rental Fees
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, BOUGHT SUPPLIES ON ACCOUNT FROM STEINMAN COMPANY, \$75?
Definition
 Debit Supplies and credit Accounts Payable/Steinman Company
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
 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.
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