General Flashcards
FOB shipping point means
Buyer is responsible for fees
Assets and Expense are increased by a
Debit
True or False.
Cash account would not be closed at the end of the accounting period?
True
Which accounts decrease owner’s equity?
Expense Accounts
Balance Sheet Accounts
Assets, liabilities, Owner’s Equity
Income Statement Accounts
Income, COGS, Expenses, other Income and expenses
Accounts Payable is reflected on the
Balance Sheet
Fees Earned - Total operating Expenses =
Net Income
Assets - Liabilities =
Owner’s Equity
Liabilities + Owner’s Equity =
Assets
Normal Credit balance of Revenue =
Credit
Assets & Expenses have a normal __________ balance.
Debit
Capital has a normal _________ balance.
Credit
A business pays weekly salaries of $30,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Weds is
Dr Salary Expense, $18,000
Cr Salaries Payable, $18,000
To figure, divide salary by days = salary per day Then, multiply the salary per day by how many days are left after the pay period ends. 30,000/5 day week = 6,000 per day
6,000 x 3 days left (Wed. Thurs. Fri) = 18,000
The following accounts were taken from the Adjusted Trial Balance:
Accumulated Depreciation $ 4,600 Fees Earned 8,000 Depreciation Expense 800 Rent Expense 700 Prepaid Insurance 4,500 Supplies 1,900 Supplies Expenses 4,200
Net income for the period is _____?
2,300
Fees Earned minus expenses = net income Fees Earned - Depreciation Exp., Insurance Exp., Rent Exp.
8,000-800-700-4200 = 2,300
