Accounting Semester 1 final

Assets= Liabilities+ Owners Equity

Accounting Equation

Journal, Post, Trial Balance, Worksheet, Adjustments, Financial Statements, Closing

Accounting Cycle Steps

asset

something of value that you own

liability

something that you owe

owners equity

the owner's financial stake in a business, representing the residual value after subtracting all liabilities (debts) from the total assets (what the business owns)

revenue

total income a business earns

expense

anything of economic value owned by an individual or organization, expected to provide future financial benefits

credit

NB for any liability

credit

NB for accts payable

credit

NB for capital

credit

NB of sales

Debit

NB of any expense

Debit

NB of drawing

debit

Cash short and over NB

no

Does income summary have a normal balance

Credit

sales tax payable NB

Debit

Dividends NB

Credit

Dividends Payable NB

Debit

NB of any asset

Debit

Cash NB

Debit

Petty Cash NB

Credit

Purchases Returns and Allowances NB

Credit

Purchases Disc. NB

Debit

Purchases NB

withdrawl

taking out for own personal use

1.. liquidity

Assets numbering

2..

Liabilities

3..

Equity

4..

Revenue

5..

Expenses

temporary accounts

revenues, expenses, dividends- close these accounts

balance sheet

assets, liabilities, equity- don’t close

contra accounts

purchases returns and allowences, purchase discounts

controlling accounts

summary accounts in the general ledger that group detailed transactions from subsidiary ledgers (like individual customer or supplier accounts) into single figures

5/10 n/30

the buyer can take a 5% discount if they pay the invoice within 10 days, otherwise the full (net) amount is due within 30 days of the invoice date

general ledger

where does trial balance info come from in a worksheet

company, financial statement, date

heading of a financial statement

credit balance (net income)

revenue- income summary

debit balance (net loss)

expenses- income summary

accounts recievable

customer accounts are in the

accounts payable

vendor accounts are in the

OE, Credit

income summary

OE, Credit

Alice Jones, Capital

Asset, Debit

prepaid insurance

Asset, Debit

customer

Revenue, Credit

sales

Asset, debit

supplies

Ex, debit

purchases

Liabilitity, Credit

any amount owed

OE, Debit

owners drawing account

Asset, Debit

anything owned

Ex, credit

purchases returns and allowances

ex, debit

sales discount

Asset, Debit

accounts receivable

Liability, Credit

Sales Tax Payable

Ex, Debit

Rent Expense