1. Midterm Review
Accounting I

3. CHAPTER 1 Starting a Proprietorship

4. THE ACCOUNTING EQUATION
Lesson 1-1, page 7

5. RECEIVING CASH
Transaction 1 August 1. Received cash from owner an an investment, $10,
Lesson 1-2, page 9

6. PAYING CASH Transaction 2 August 3. Paid cash for supplies, $1,577.00.
Transaction 3 August 4. Paid cash for insurance, $1,
Lesson 1-2, page 10

7. TRANSACTIONS ON ACCOUNT
Transaction 4 August 7. Bought supplies on account from Ling Music Supplies, $2,
Transaction 5 August 11. Paid cash on account to Ling Music Supplies, $1,
Lesson 1-2, page 11

8. CHAPTER 2
Starting a proprietorship: Changes that affect owner’s equity

9. REVENUE TRANSACTIONS
Transaction 6 August 12. Received cash from sales, $
Transaction 7 August 12. Sold services on account to Kids Time, $
Lesson 2-1, page 26

10. BALANCE SHEET PREPARATION1 2 3 4 6 5 7 8
Lesson 2-2, page 30

11. CHAPTER 3 Analyzing Transactions into debit and credit parts

12. PAID CASH FOR AN EXPENSE
August 12. Paid cash for rent, $ 2 2 1 4 3 1
1. Rent Expense and Cash are affected. 4
2. Cash is an asset. Rent Expense is an expense account that affects owner’s equity. 3 3
3. Assets are decreased. Owner’s equity is decreased; expenses are increased.
4. Rent Expense is debited. Cash is credited.
Lesson 3-3, page 53

13. CHAPTER 4 Journalizing Transactions

14. Encore Music Uses five source documents
Journal Source Documents CONCEPT: Objective Evidence When a source document is prepared for each transaction.
Encore Music Uses five source documents
Checks
Sales invoices
Receipts
Calculator tape
memorandums

15. STEPS- JOURNALIZING Step 1: Date-write the date Step 2: Debit
Step 3 Credit
Step 4 Source Document

16. PAID CASH FOR SUPPLIES 1 2 4 3 1. Write the date. 2. Debit Supplies.
3. Credit Cash.
4. Write the source document number.
Lesson 4-1, page 70

17. PAID CASH FOR INSURANCE
August 4. Paid cash for insurance, $1, Check No. 2.
Cash
Prepaid Insurance
1. Which accounts are affected?
Prepaid Insurance
Cash
Debit
Normal Balance
1,200.00
2. How is each account classified?
Prepaid Insurance is as asset account.
Cash is as asset account. ↑
3. How is each classification changed?
Assets are increased.
Assets are decreased.
Debit
Normal Balance
1,200.00 ↑
4. How is each amount entered in the accounts?
Assets increase on the debit side.
Assets decrease on the credit side.
Lesson 4-2, page 72

18. PAID CASH FOR INSURANCE (continued)
August 4. Paid cash for insurance, $1, Check No. 2. 2 3 1 4
1. Write the date.
2. Debit Prepaid Insurance.
3. Credit Cash.
4. Write the source document number.
Lesson 4-2, page 72

19. BOUGHT SUPPLIES ON ACCOUNT
August 7. Bought supplies on account from Ling Music Supplies, $2, Memorandum No. 1.
1. Which accounts are affected?
Supplies
Accounts Payable—Ling Music Supplies
Supplies
Accts. Pay.—Ling Music Supplies
Debit
Normal Balance
2,720.00
2. How is each account classified?
Supplies is an asset account.
Accts. Pay.—Ling Music Supplies is a liability account. ↑
3. How is each classification changed?
Assets are increased.
Liabilities are increased.
Credit
Normal Balance
2,720.00 ↑
4. How is each amount entered in the accounts?
Assets increase on the debit side.
Liabilities increase on the credit side.

20. BOUGHT SUPPLIES ON ACCOUNT (continued)
August 7. Bought supplies on account from Ling Music Supplies, $2, Memorandum No. 1. 2 1 4 3
1. Write the date.
2. Debit Supplies.
3. Credit Accounts Payable—Ling Music Supplies.
4. Write the source document number.

21. RECEIVED CASH FROM SALES (continued)
August 12. Received cash from sales, $ Tape No. 12. 3 1 4 2
1. Write the date.
2. Debit Cash.
3. Credit Sales.
4. Write the source document number.
Lesson 4-3, page 76

22. SOLD SERVICES ON ACCOUNT (continued)
August 12. Sold services on account to Kids Time, $ Sales Invoice No. 1. 2 1 4 3
1. Write the date.
2. Debit Cash.
3. Credit Sales.
4. Write the source document number.
Lesson 4-3, page 77

23. RULING A JOURNAL PAGE 1 5 2 3 4 1. Rule a single line.
2. Write the date.
3. Write Carried Forward.
4. Write each column total.
5. Rule double lines.
Lesson 4-4, page 83

24. CHAPTER 5 Posting to a general ledger

25. RELATIONSHIP OF A T ACCOUNT TO AN ACCOUNT FORM
Lesson 5-1
1/11/2017
RELATIONSHIP OF A T ACCOUNT TO AN ACCOUNT FORM
Lesson 5-1, page 98

26. You should make a numbering system for your chart of accounts.
A block of numbers is usually assigned to each of the categories that make up the chart of accounts and blank numbers are left at the end for additional accounts to be added in the future.
As a part of the accounting cycle, the chart of accounts is used in journal transactions. There are five categories on the chart of accounts.
Five Categories on the Chart of Accounts
Assets
Liabilities
Owner's Equity
Revenue
Expenses
business

27. CHART OF ACCOUNTS
Lesson 5-1, page 99

28. OPENING AN ACCOUNT IN A GENERAL LEDGER1 2
1. Write the account title.
2. Write the account number.
Lesson 5-1, page 101

29. POSTING A SECOND AMOUNT TO AN ACCOUNT2 1 3 5 4
1. Write the date.
2. Write the journal page number.
3. Write the debit amount.
4. Write the new account balance.
5. Write the account number in the Post. Ref. column of the journal.
Lesson 5-2, page 104

30. CHECK MARKS SHOW THAT AMOUNTS ARE NOT POSTED
Check mark indicates that amounts ARE NOT posted individually.
Check marks indicate that general amount column totals ARE NOT posted.
Lesson 5-3, page 107

31. POSTING THE TOTAL OF THE SALES CREDIT COLUMN2 3 1 5 4
1. Write the date.
2. Write the journal page number.
3. Write the column total in the Credit amount column.
4. Write the new account balance.
5. Return to the journal and write the account number in parentheses.
Lesson 5-3, page 108

32. POSTING THE TOTAL OF THE CASH DEBIT COLUMN2 1 3 5 4
1. Write the date.
2. Write the journal page number.
3. Write the column total in the Debit amount column.
4. Write the new account balance.
5. Return to the journal and write the account number in parentheses.
Lesson 5-3, page 109

33. JOURNAL PAGE WITH POSTING COMPLETED
Lesson 5-4, page 112

34. CHAPTER 6 Cash Control Systems

35. BLANK ENDORSEMENT, SPECIAL ENDORSEMENT, AND RESTRICTIVE ENDORSEMENT
Lesson 6-1, page 127

36. COMPLETED CHECK STUB AND CHECK1 2 7 3 4 8 9 10 11 12 5 6
Preparing check stubs
Preparing checks
1. Write the amount of the check.
7. Write the date.
2. Write the date of the check.
8. Write to whom the check is to be paid.
3. Write to whom the check is to be paid.
9. Write the amount in figures.
4. Record purpose of the check.
10. Write the amount in words.
5. Write the amount of the check.
11. Write the purpose of the check.
6. Calculate the new account balance.
12. Sign the check.
Lesson 6-1, page

37. RECORDING A VOIDED CHECK✓ 4 1 2 3 5
1. Record the date.
2. Write the word VOID in the account title.
3. Write the check number.
4. Place a check mark in the Post. Ref. column.
5. Place a dash in the Cash Credit column.
Lesson 6-1, page 129

38. BANK STATEMENT RECONCILIATION
1. Date 1
2. Check Stub Balance 2 5
3. Service Charge 3 6
4. Adjusted Check Stub Balance 7 8
5. Bank Statement Balance
6. Outstanding Deposits 9 4 10
7. Subtotal
8. Outstanding Checks
9. Adjusted Bank Balance
Lesson 6-2, page 132
10. Compare Adjusted Balances

39. JOURNALIZING A BANK SERVICE CHARGE1 2 4 3
1. Write the date.
2. Debit Miscellaneous Expense.
3. Credit Cash.
4. Write the source document number.
Lesson 6-2, page 134

40. JOURNALIZING A DISHONORED CHECK
November 29. Received notice from the bank of a dishonored check from Learn N Play, $35.00, plus $15.00 fee; total, $ Memorandum No. 55.
Cash
Accounts Rec.—Learn N Play
1. Which accounts are affected?
Accounts Receivable—Learn N Play
Cash
Debit
Normal Balance
50.00
2. How is each account classified?
Accounts Receivable—Learn N Play is an asset account.
Cash is an asset account. ↑
Debit
Normal Balance
3. How is each classification changed?
Assets are increased.
Assets are decreased.
50.00 ↑
4. How is each amount entered in the accounts?
Assets increase on the debit side.
Assets decrease on the credit side.
Lesson 6-3, page 137

41. JOURNALIZING A DISHONORED CHECK4 3 1 2
1. Write the date.
2. Debit Accounts Receivable—Learn N Play.
3. Credit Cash.
4. Write the source document number.
Lesson 6-3, page 137

42. ESTABLISHING A PETTY CASH FUND
Lesson 6-4
ESTABLISHING A PETTY CASH FUND
August 17. Paid cash to establish a petty cash fund, $ Check No. 8.
Cash
Petty Cash
1. Which accounts are affected?
Petty Cash
Cash
Debit
Normal Balance
200.00 ↑
2. How is each account classified?
Petty Cash is an asset account.
Cash is an asset account.
Debit
Normal Balance
3. How is each classification changed?
Assets are increased.
Assets are decreased.
200.00 ↑
4. How is each amount entered in the accounts?
Assets increase on the debit side.
Assets decrease on the credit side.
Lesson 6-4, page 141

43. ESTABLISHING A PETTY CASH FUND4 3 1 2
1. Write the date.
2. Debit Petty Cash.
3. Credit Cash.
4. Write the source document number.
Lesson 6-4, page 141

44. REPLENISHING PETTY CASH4 3 2 1
1. Write the date.
2. Debit Miscellaneous Expense and Advertising Expense.
3. Credit Cash.
4. Write the source document number.
Lesson 6-4, page 143

45. CHAPTER 7 Work sheet for a service business

46. PREPARING A TRIAL BALANCE ON A WORK SHEET2
1. Account Titles 1
2. Account Balances
3. Single Rule
4. Add Totals
5. Write Totals
6. Double Rule 3
4 & 5 6
Lesson 7-1, page 157

47. SUPPLIES ADJUSTMENT ON A WORK SHEET2 3 1
1. Write the debit amount.
2. Write the credit amount.
3. Label the two parts of this adjustment with a small letter a in parentheses, (a).
Lesson 7-2, page 161

48. PREPAID INSURANCE ADJUSTMENT ON A WORK SHEET2 3 1
1. Write the debit amount.
2. Write the credit amount.
3. Label the two parts of this adjustment with a small letter b in parentheses, (b).
Lesson 7-2, page 162

49. EXTENDING BALANCE SHEET ACCOUNT BALANCES ON A WORK SHEET
Lesson 7-3
EXTENDING BALANCE SHEET ACCOUNT BALANCES ON A WORK SHEET 1 2 3
1. Debit Balances without Adjustments
2. Debit Balances with Adjustments
3. Credit Balances without Adjustments
Lesson 7-3, page 165

50. EXTENDING INCOME STATEMENT ACCOUNT BALANCES ON A WORK SHEET1 2 3
1. Sales Balance
2. Expense Balances without Adjustments
3. Expense Balances with Adjustments
Lesson 7-3, page 166

51. RECORDING NET INCOME, AND TOTALING AND RULING A WORK SHEET
1. Single Rule
2. Total
3. Net Income
4. Extend Net Income
5. Single Rule
6. Totals
7. Double Rule 1 2 4 5 3 6 7
Lesson 7-3, page 167

52. CALCULATING AND RECORDING A NET LOSS ON A WORK SHEET1 3 2 4
1. Single Rule
2. Totals
3. Net Loss
4. Extend Net Loss
Lesson 7-3, page 168

53. CHECKING FOR TYPICAL CALCULATION ERRORS
Lesson 7-4
CHECKING FOR TYPICAL CALCULATION ERRORS
When two column totals are not in balance, subtract the smaller total from the larger total to find the difference.
Check the difference between the two amounts against the following guides.
1. The difference is 1, such as $.01, $.10, $1.00, or $10.00.
2. The difference can be divided evenly by 2.
3. The difference can be divided evenly by 9.
4. The difference is an omitted amount.
Lesson 7-4, page 170

54. CHECKING FOR ERRORS IN THE WORK SHEET
Check for Errors in the Trial Balance Column
Have all general ledger account balances been copies in the Trial Balance column correctly?
Have all general ledger account balances been recorded in the correct Trial Balance column?
Check for Errors in the Adjustments Columns
Do the debits equal the credits for each adjustment?
Is the amount for each adjustment correct?
Check for Errors in Income Statement and Balance Sheet Columns
Has each amount been copied correctly?
Has each amount been extended to the correct column?
Has the net income/loss been calculated correctly?
Has the net income/loss been recorded in the correct column?
Lesson 7-4, page 171

55. CHAPTER 8 Financial Statements for a proprietorship

56. INCOME STATEMENT INFORMATION ON A WORK SHEET
Lesson 8-1
INCOME STATEMENT INFORMATION ON A WORK SHEET
Lesson 8-1, page 182

57. HEADING OF AN INCOME STATEMENT1 2 3
1. Name of Company
2. Name of Report
3. Date of Report
Lesson 8-1, page 182

58. REVENUE, EXPENSES, AND NET INCOME SECTIONS OF AN INCOME STATEMENT1 2 3 4 6 5 7 9 8 11 10 12 14 13
1. Write the name of the first section.
8. Write Total Expenses.
2. Write the title of the revenue account.
9. Record total expenses.
3. Record the balance of the account.
10. Calculate net income.
4. Write the name of the second section.
11. Rule a single line.
5. Write the title of each expense account.
12. Write Net Income.
6. Record the balance of each account.
13. Record net income.
Lesson 8-1, page 183
7. Rule a single line.
14. Rule double lines.

59. COMPONENT PERCENTAGE ANALYSIS OF AN INCOME STATEMENT
Lesson 8-1, page 184

60. INCOME STATEMENT WITH TWO SOURCES OF REVENUE AND A NET LOSS
2. Account Titles 1
3. Revenue Amounts
4. Total of Sales 3 2
5. Total Sales 5 4
6. Net Loss
7. Record Net Loss 6 7
Lesson 8-1, page 185

61. BALANCE SHEET INFORMATION ON A WORK SHEET
Lesson 8-2
BALANCE SHEET INFORMATION ON A WORK SHEET
Lesson 8-2, page 187

62. HEADING OF A BALANCE SHEET1 2 3
1. Name of Company
2. Name of Report
3. Date of Report
Lesson 8-2, page 187

63. OWNER’S EQUITY SECTION OF A BALANCE SHEET1 2 3 4 5 6 7 8 9 10
1. Owner’s Equity
6. Total of Assets
2. Account Title
7. Total Liabilities and Owner’s Equity
3. Capital Amount
8. Total of Liabilities and Owner’s Equity
4. Single Line
9. Compare Totals
5. Total Assets
10. Double Lines
Lesson 8-2, page 189

64. OWNER’S EQUITY REPORTED IN DETAIL ON A BALANCE SHEET1 2 3 4 6 7 5 8 9
1. Beginning Capital
6. Difference
2. Beginning Capital Amount
7. Ending Capital
3. Net Income
8. Current Capital Amount
4. Drawing
9. Total Liabilities and Owner’s Equity
5. Single Line
Lesson 8-2, page 190