Term
| On a worksheet, the Income Statement credit total is $1,200 and the Income Statement debit total is $800. The company has a: |
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Definition
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Term
| The ABC Manufacturing Company's Income Statement worksheet shows total debits of $600 and total credits of $750. ABC Manufacturing Company has a: |
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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: |
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Definition
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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? |
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Definition
| Calculate the component percentages |
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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? |
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Definition
| Write the name of the company. |
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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? |
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Definition
| Double rule across both amount columns. |
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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? |
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Definition
| Write the balance of each expense account. |
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Term
| Mary is preparing a Balance Sheet. What must she do after she completes the heading information? |
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Definition
| Prepare the Asset section. |
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Term
| Mary is preparing a Balance Sheet. What must she do after she completes the Assets section? |
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Definition
| Prepare the Liability section. |
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Term
| Mary is preparing a Balance Sheet. When she completes the Owner's Equity Section, what should the end result be? |
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Definition
| The Total Assets should equal Total Liabilities plus Owner's Equity. |
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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: |
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Definition
| Supplies Expense and credit Supplies $1,500. |
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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: |
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Definition
| Supplies Expense and credit Supplies $1,500. |
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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: |
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Definition
| Insurance Expense and credit Prepaid Insurance $1,200. |
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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: |
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Definition
| Insurance Expense and credit Prepaid Insurance $2,200. |
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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 |
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Definition
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Term
| In Scenario 2.02 B, what is the component percentage for Rent Expense? (NCCTE.9_12.BE.6311.CA02.02) |
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Definition
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Term
| 16. In Scenario 2.02 B, what is the component percentage for Utilities Expense? |
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Definition
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Term
| 17. In Scenario 2.02 B, what is the component percentage for Total Expenses? |
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Definition
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Term
| 18. In Scenario 2.02 B, what is the component percentage for Net Income? |
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Definition
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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? |
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Definition
| Write the title of the account debited in the Account Title column |
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Term
| 24. In preparing adjustment entries for his company, Steve has written "Insurance Expense" in the Account Title column. What will he do NEXT? |
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Definition
| Record the debit amount in the General Debit column |
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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? |
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Definition
| Journalize an entry to close income statement accounts that have a debit balance |
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Term
| Mary is preparing the closing entries for her company. After she has closed the Income Summary account, what will she do NEXT? |
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Definition
| Journalize an entry to close the owner's drawing account |
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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? |
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Definition
| Write the account titles of all general ledger accounts that have balances in the Account Title column |
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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? |
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Definition
| Rule a single line below the last amount in each column |
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Term
| 29. James is closing the income summary account. His company had a net income of $900. The correct journal entry is to debit: |
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Definition
| Income Summary, and credit Owner's Equity, $900. |
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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: |
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Definition
| Owner's equity, and credit Income Summary, $2,000. |
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Term
| 31. The owner's drawing account has a balance of $275. The correct entry to close the drawing account would be to debit: |
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Definition
| Owner's equity account, credit drawing account for $275. |
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Term
| 32. When closing the Advertising Expense account, debit: |
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Definition
| Income Summary and credit Advertising Expense |
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Term
| 33. What is the correct journal entry for the transaction, PAID CASH FOR COMPUTER PAPER? |
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Definition
| Debit Supplies and credit Cash |
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Term
| 34. What is the correct journal entry for the transaction, PAID CASH FOR PRINTER CARTRIDGES? |
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Definition
| Debit Supplies and credit Cash |
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Term
| What is the correct journal entry for the transaction, PAID CASH FOR AN OFFICE DESK, $250? |
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Definition
| Debit Office Equipment and credit Cash |
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Term
| What is the correct journal entry for the transaction, PAID CASH FOR REPAIRS, $95? |
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Definition
| Debit Repair Expense and credit Cash |
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Term
| What is the correct entry for the transaction, HANS SCHMIDT INVESTED $2000 OF HIS OWN MONEY INTO THE BUSINESS? |
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Definition
| Debit Cash and credit HANS SCHMIDT, Capital |
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Term
| What is the correct journal entry for the transaction, RECEIVED BIKE RENTAL FEES, $375? |
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Definition
| Debit Cash and credit Rental Fees |
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Term
| What is the correct journal entry for the transaction, PAID CASH TO JOHN SMITH, OWNER FOR PERSONAL USE, $500? |
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Definition
| Debit John Smith, Drawing and credit Cash |
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Term
| What is the correct journal entry for the transaction, BOUGHT SUPPLIES ON ACCOUNT FROM STEINMAN COMPANY, $75? |
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Definition
| Debit Supplies and credit Accounts Payable/Steinman Company |
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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? |
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Definition
| Debit Advertising Expense, $200; credit Miscellaneous Expense, $200 |
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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? |
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Definition
| Debit Utilities Expense, $250; credit Repairs Expense, $250 |
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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? |
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Definition
| Record an account number in the journal. |
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