Final Exam

Balance sheet accounts

Permanent accounts (balances carry forward to the next period)

Assets

normal debit balance

Cash

Asset

Accounts Receivable

Asset

Inventory

Asset

Supplies

Asset

Prepaid Insurance or Prepaid Rent

Asset

Equipment

Asset

Buildings

Asset

Land

Asset

Contra-Assets

normal credit balance; reduce total assets

Accumulated Depreciation

Contra-asset

Allowance for Doubtful Accounts

Contra-asset

Liabilities

normal credit balance

Accounts Payable

Liability

Salaries Payable

Liability

Interest Payable

Liability

Sales Tax Payable

Liability

Dividends Payable

Liability

Unearned Revenue

Liability

Notes Payable

Liability

Unearned revenue and balances ending in ‘payable’ are a what?

Liability

Contra-Equity

normal debit balance; reduces total stockholders' equity

Treasury Stock

Contra-equity

Income statement accounts

Temporary accounts (closed at the end of the period)

Revenues

normal credit balance

Sales Revenue

Revenues

Service Revenue

Revenues

Contra-Revenues

normal debit balance; reduce total revenue

Sales Discounts

Contra-Revenue

Sales Returns and Allowances

Contra-Revenues

Expenses

normal debit balance

Bad Debt Expense

Expense

Cost of Goods Sold

Expense

Depreciation Expense

Expense

Fuel Expense

Expense

Insurance Expense

Expense

Interest Expense

Expense

Rent Expense

Expense

Repairs and Maintenance Expense

Expense

Salaries Expense or Wages Expense

Expense

Supplies Expense

Expense

Utilities Expense

Expense

Dividends are a temporary or permanent account?

Temporary

Are dividends apart of income statement or balance sheet?

Nope! They are reported only on the Statement of Retained Earnings

Dividends are only reported where?

Statement of Retained Earnings

Debit or credit? Dividends

Debit

Debit or credit? Cash

Debit

Debit or credit? Accounts receivable

Debit

Debit or credit? Inventory

Debit

Debit or credit? Supplies

Debit

Debit or credit? Prepaid Insurance or Prepaid Rent

Debit

Debit or credit? Equipment

Debit

Debit or credit? Buildings

Debit

Debit or credit? Land

Debit

Debit or credit? Accumulated Depreciation

Credit

Debit or credit? Allowance for Doubtful Accounts

Credit

Debit or credit? Accounts Payable

Credit

Debit or credit? Salaries Payable

Credit

Debit or credit? Interest Payable

Credit

Debit or credit? Sales Tax Payable

Credit

Debit or credit? Dividends Payable

Credit

Debit or credit? Unearned Revenue

Credit

Debit or credit? Notes Payable

Credit

Debit or credit? Common Stock

Credit

Debit or credit? Preferred Stock

Credit

Debit or credit? Paid-in Capital in Excess of Par

Credit

Debit or credit? Retained Earnings

Credit

Debit or credit? Treasury Stock

Debit

Debit or credit? Sales Revenue

Credit

Debit or credit? Service Revenue

Credit

Debit or credit? Sales Discounts

Debit

Debit or credit? Sales Returns and Allowances

Debit

Debit or credit? Bad Debt Expense

Debit

Debit or credit? Cost of Goods Sold

Debit

Debit or credit? Depreciation Expense

Debit

Debit or credit? Fuel Expense

Debit

Debit or credit? Insurance Expense

Debit

Debit or credit? Interest Expense

Debit

Debit or credit? Rent Expense

Debit

Debit or credit? Repairs and Maintenance Expense

Debit

Debit or credit? Salaries Expense or Wages Expense

Debit

Debit or credit? Supplies Expense

Debit

Debit or credit? Utilities Expense

Debit

Assets = ?

Liabilities + Stockholders Equity

Stockholders Equity = ?

Assets - Liabilities

Liabilities = ?

Assets - Stockholders Equity

Revenue > expenses = ?

Net income (increases equity)

Expenses > revenue =

net loss (decreases equity)

Interest = ?

Balance × Rate

Principal = ?

Payment − Interest

New Balance = ?

Balance − Principal