Accounting 201A Chapter 3 And 4

Front 1

Steps in the accounting cycle

Back 1

1.analyze business transactions
2.journalize the transactions
3.post to ledger accounts
4.prepare a trial balance
5.journalise and post adjusting entries: repayments/accruals
6.prepare an adjusted trial balance
7.prepare financial statements: income statement, retained earnings statement, balance sheet
8.journalize and post closing entries
9.prepare and post closing trial balances

Front 2

in a T account what is on the left?

Back 2

debit (gain,profits/increase)
debits increase assets and decrease liabilities

Front 3

in a T account what is on the right?

Back 3

credit (losses/decreases)
credits decrease assets and increase liabilities

Front 4

asset accounts show? while liability accounts show?

Back 4

asset accounts show debit balances while liability accounts show credit balances

Front 5

debits decrease? credits increase?

Back 5

debits(dividends or net losses) decrease common stock and retained earnings. credits(net income) increase common stock and retained earnings.

Front 6

dividend account is affected by?

Back 6

debits increase dividend account and decreased by credits

Front 7

Revenue accounts

Back 7

debits decrease this. credits increase this

Front 8

Expense accounts

Back 8

debits increase this. credits decrease this

Front 9

a dividends normal balance is?

Back 9

debit

Front 10

accounts receivable is?

Back 10

debit

Front 11

normal balance for all revenues (ex. service revenue) is?

Back 11

credit

Front 12

normal balance for all expenses (ex. interest expense) is?

Back 12

debit

Front 13

What is listed under liabilities?

Back 13

notes payable, accounts payable, salaries payable, interest payable, unearned revenue

Front 14

What is listed under assets?

Back 14

cash, supplies, prepaid services, equipment, accumulated depreciation equipment

Front 15

what is listed under stockholder's equity?

Back 15

common stock, dividends, retained earnings, income summary