Bookkeeping 22 Flashcards Preview

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Flashcards in Bookkeeping 22 Deck (6)
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1
Q
  1. What is the last step for completing the Worksheet?
A

You need to enter each ADJUSTMENT in the GENERAL JOURNAL.

2
Q
  1. How do you recognize the ADJUSTMENTS that were made in the Worksheet so they can be transferred to the General Journal?
A

They are the items that were identified with a letter inside parenthesis (x) in the ADJUSTMENT columns.

3
Q
  1. What are the rules for ADJUSTING the Journal Entries?
A

THERE ARE THREE:

  1. To adjust a PREPAID ITEM
  2. To adjust a PAYABLE.
  3. To show a DEPRECIATION adjustment.
4
Q
  1. How do you make the adjustment for a PREPAID ITEM? To adjust a prepaid item that has been consumed through the passage of time, you:
A

INCREASE THE EXPENSE with a Debit and DECREASE the asset with a Credit:

Rent Expense………Dr.
Prepaid Rent………Cr.

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5
Q
  1. How do you make the ADJUSTMENT for a PAYABLE?
A

Increase the EXPENSE with a DEBIT and increase the PAYABLE with a CREDIT:

Salaries Expense………Dr
Salaries Payable……Cr

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6
Q
  1. How do you show DEPRECIATION adjustment?
A

Increase the EXPENSE with a DEBIT and increase ACCUMULATED DEPRECIATION with a CREDIT.

Depreciation Expense……Dr
Accumulated Depreciation….Cr

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