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Financial Accounting BUS251 > Journal entries > Flashcards

Journal entries Flashcards

1
Q

The allowance entry
Establishing the allowance and the credit losses (Ch6)

A

DR Credit Losses
CR Allowance for Expected Credit Losses

OR

DR Bad debts expense
CR Allowance for Uncollectible Accounts or Allowance for Doubtful Accounts (AFDA)

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2
Q

The write off entry
Writing off a specific account after we have given up on the chance that they are going to pay (Ch6)

A

DR Allowance for Expected Credit Losses
CR A/R

OR

Allowance for Uncollectible Accounts

OR

Allowance for Doubtful Accounts (AFDA)

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3
Q

The recovery entry
Somebody who you have given up on, paid off their debt with you
2 entries (Ch6)

A

DR A/R
CR AFDA

AND

DR Cash
CR A/R

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4
Q

Journal Entry for a Credit card transaction with a related fee (Ch 6 )

A

Let’s look at an example of how a company would record a credit card transaction, including the related fee. If a company made a $3,500 credit card sale, and the credit card discount was 3%, the journal entry would be as follows:

DR A/R—Credit Card Company 3,395
DR Credit Card Expense 105
CR Sales Revenue 3,500

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5
Q

Journal Entry for Direct Write off Method

A

DR Credit Losses
CR A/R

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6
Q

Journal entry for when the inventory is purchased periodic inventory system

A

DR Inventory
CR Cash or A/R

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7
Q

Journal entry for when the inventory is purchased perpetual inventory system

A

DR Purchases
CR Cash or A/R

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8
Q

Journal entry at the time of sale periodic inventory system

A

DR Cash or A/R
CR Sales Revenue
DR COGS
CR Inventory

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9
Q

Journal entry at the time of sale perpetual inventory system

A

DR Cash or A/R
CR Sales Revenue

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10
Q

Additional closing entry for perpetual inventory system

A

DR Inventory (Closing)
DR COGS
CR Purchases
CR Inventory (Opening)

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11
Q

Depreciation Journal Entry

A

DR Depreciation expense
CR Accumulated depreciation, Equipment

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12
Q

Impairment Loss entry

A

DR Loss on impairment
CR Acc. impairment loss, Equipment

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13
Q

gain on disposal journal entry

A

Cash 6,000
Acc. Depreciation, Equipment 45,000
Equipment 50,000
Gain on Disposal of Equipment 1,000

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14
Q

gain or loss on equipment journal entry

A

DR Cash A
DR Acc. Depreciation, Equipment B
CR Equipment C
Gain or Loss on Disposal of Equipment D

A + B = C + D

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15
Q

Scrapped asset journal entry

A

Acc. Dep. Equip. 45000
Loss on Disposal of Equip. 5000
Equipment 50000

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16
Q

Amortization journal entry

A

DR Amortization expense XXX
CR Acc. Amortization, Patents XXX

17
Q

Journal entry for current portion of a long term debt
(how to move it to current portion - reclassification entry)

A

DR Long Term Loan Payable
CR Current portion of long term payable

18
Q

Deferred Revenue Journal Entry

A

DR Cash
CR Deferred Revenue

19
Q

after earning the revenue journal entry (gym membership example)

A

DR Deferred Revenue
CR Membership Revenue

20
Q

Initial purchase of gift card journal entry

A

DR Cash
CR Deferred revenue (or gift card liability)

21
Q

Usage of gift card (redemption)

A

DR Deferred revenue (or gift card liability)
CR Sales Revenue

DR COGS
CR Inventory

22
Q

The journal entry for warranty provision for assurance type of warranty

A

DR Warranty expense
CR Warranty Provision

23
Q

Journal entry for assurance type of warranty

A

Warranty Provision
XXX

Inventory

XXX ⟶ If product replaced

or
Inventory and/or Wage Expense

XXX ⟶ If product repaired

or
Cash

XXX ⟶ If refund provided*

or
Deferred Revenue

XXX ⟶ If store credit provided

or
Miscellaneous Revenue

XXX ⟶ If warranty period expired

*This assumes that the product returned cannot be sold to another customer.

24
Q

Employee Entry

A

DR Wage expense XXX
CR Employee Income Taxes payable XXX
CR CPP Payable XXX
CR EI Payable XXX
CR Wages payable (or cash if paid at this time). XXX

25
Q

Employer Entry

A

This entry accounts for the employer’s share of CPP and EI
DR Wages expense XXX
CR CPP (same as the employee’s share) XXX
CR EI (1.4 times the employee’s share) XXX

26
Q

payment of wages entry

A

DR Wages payable XXX
CR Cash XXX

27
Q

Remittance Entry

A

DR Employee Income Taxes Payable XXX
DR CPP (both the employee’s and employer’s shares) XXX
DR EI (both the employee’s and employer’s shares) XXX
CR Cash XXX

28
Q

Journal entry for declaring dividends

A

DR Dividends Declared XXX
CR Dividends Payable XXX

Financial Accounting BUS251 (8 decks)

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