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Published byHomer Morrison
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Keyterms Journal Entries Closing Entries Normal Balance Accounting Cycle 50 40 30 20 10 20 30 40 50 10 20 30 40 50 10 20 30 40 50 10 20 30 40 50
What is the first step of the accounting cycle?
Collect source documents.
What must be done before posting to the general ledger?
Where does the info in the worksheet come from?
What is the last step of the accounting cycle?
Posting closing trial balance.
When do you prepare the Trial balance?
End of the month.
What is the normal balance of assets?
What is the normal balance of expenses?
What is the normal balance of accounts receivable?
What is the normal balance for prepaid insurance?
What is the normal balance of income summary?
Income summary doesn’t have normal balance.
Which accounts do you close?
Sales, expenses, drawing, income summary
How would you close sales $365.
Debit sales 365, credit income summary 365
How would you close income summary $400.
Debit income summary 400, credit capital 400
How would you close drawing $300.
Debit capital 300 credit drawing 300.
How would you close supplies $300.
You wouldn’t close supplies.
What is the journal entry for: paid cash for supplies $500.
Credit cash 500, debit supplies 500
What is the journal entry for: Sold services on account $450.
Debit accounts receivable 450, credit sales 450.
What is the journal entry for: bought supplies on account $2000.
Debit supplies 2000, credit accounts payable 2000.
What is the journal entry for: paid cash on account $3000.
Debit accounts payable 3000, credit cash 3000
What is the journal entry for: received cash from owner as an investment $5000.
Debit cash 5000, credit capital 5000.
What is an Account?
A record that summarizes all info about one item in the accounting equation
What are Temporary Accounts?
Sales, expenses. Drawing, income summary.
What are Permanent accounts.
Cash, supplies, (all assets and liabilities)
What is the purpose of a worksheet.
To prove that debits and credits equal
What is Net loss?
The difference between total revenue and total expenses when total expenses are greater.
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