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12 Cards in this Set

  • Front
  • Back
What 3 pieces of information should appear at the top of all financial statements?
1. Whom the statement is for (ie. name of company)
2. What type of of statement (ie. tittle of the statement)
3. The period of time to which the statement relates.
Explian in your own words, the theroy of the double entry bookkeeping.
Means that for every debit or series of debts, there always be a corresponding credit or series of credits.
If total assets are 50,000 and captial (owners equity) is $20,000, what would be the dollar amount be for liabilities?
Assets + Liabilities + Capital ( owners Equity)

50,000 + ? + 20,000
Therefore, liabilities would be:
Explain how T-accounts work.
T-accounts which look like the letter "T", have the account name at the top, increases are recorded on one side of the account and decrease are recorded on the other side. The account balance is the dffernce between the sums of the left and right sides of the account.
What would be the journal entry to record the sale of goods where the customer will pay later?
DR. Accounts Receiveable
CR. Sales
Would " Bank Loans Payable" normally have a debit or credit balance? Why?
A credit balance because its a liabilitiy account.
What type of enry is recorded in a General Journal?
All transactions that are not recorded in any other journal.
Why type of entry is recorded in Purchases Journal?
Purchases on accounts
What type of entry is recorded in the Sales Journal?
Sales on account
What is a Vendor's Invoice and what informantion from the invoice is recorded in the Purchases Journal?
An itemized statement of goods purchased.
: Date of Invoice
: Vendors Name
: Total of Invoice
: Vendors Number
: Cost of Goods
If a vendor's invoice for the prhase of offixce supplies totaled $51.75, and this total icluded $3.60 PST and $3.15 GST, what amount would be recorded in the Office Supplies column of the Purchases Journal?
Total cost of office supplies plus PST would be recorded in the Office Supplies Column.
Total cost - GST = Cost of supplies including PST
$51.75 - $3.15 = $48.60
The sales invoice for the saleof a stereo system totaled $300.00, and this total included $20.87 PST and $18.26 GST, what amount would be recorded in the Sales column of the Sales Journal?
Retail price
Total cost - GST - PST =
$300.00 - $20.87 - $18.26
= $260.87