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16 Cards in this Set
- Front
- Back
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With the Accrual basis of accounting, when is revenue recognized? |
When it is earned |
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Write the journal entry using Accrual basis of accounting for $100 Cash received when revenue is earned: |
Cash 100 Sales Revenue 100 |
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Using the Accrual basis of accounting, record $100 cash received after revenue is earned:
(hint: you need 2 entries) |
Accounts Receivable 100 Sales Revenue 100
Cash 100 Accounts Receivable 100 |
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Using the Accrual basis of accounting, record $100 cash before revenue is earned:
(hint: you need 2 entries) |
Cash 100 Unearned Revenue 100
Unearned Revenue 100 Sales Revenue 100 |
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Adjusting Entries
1. Write the journal entry for $2,850 worth of office supplies purchased on account. 2. At the end of the month, only $1,530 of the office supplies are left. Calculate how much is left and write the adjusting entry as needed. |
Dec.1| Office Supplies 2,850 | Accts. Payable 2,850
Dec.31| Supplies Expense 1,320 | Office Supplies 1,320 |
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Adjusting Entries
1. Assume that office equipment is purchased by a company for $32,400 and is expected to last 6 years. Using straight-line depreciation, what should the journal entry be? |
Depreciation Expense 450 Acc. Depreciation 450 (office supplies) |
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Adjusting Entries
1. On Dec.5, a company signed a 4-month contract for $750 a month for work to be performed, and the entire $3,000 was payed in advance. What is the journal entry? 2. After 1 month as passed (Dec. 31), write the adjusting journal entry: |
Dec. 5 | Cash 3,000 | Unearned Rev. 3,000
Dec. 31 | Unearned Rev. 750 | Fee Revenue 750 |
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Adjusting Entries
1. The employees at a company are paid $810 a week every 2 weeks. At the end of the year the employee has worked 1 week in December for which wages are not paid until January 6th. Show the 2 journal entries. |
Dec. 31 |Wage Expense 810 | Wages Payable 810
Jan.6 |Wage Expense 810 |Wages Payable 810 | Cash 1620 |
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Adjusting Entries
1. The annual interest rate on a loan is 10% on a $36,000 note. The first payment is due on Nov. 30th, 2012. What are the journal entries for Nov. 30th and Dec. 31st? |
Nov.30 | Interest Payable 300 |Interest Expense 3,300 Cash 3600
Dec. 31 | Interest Expense 300 | Interest Payable 300
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Adjusting Entries
1. A company will maintain a website for a $150 monthly fee. By Dec. 31 one month's revenue is paid. 2. By Feb. 28th, $450 is paid, but the company must also account for the earlier $150. |
Dec. 31 | Accounts Receivable 150 | Fee Revenue 150
Feb. 28 | Cash 450 | Accts. Receivable 150 | Fee Revenue 300 |
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Adjusting Entries
1. A $2,000 note is loaned with an annual interest rate of 6%. Record the journal entry as of Dec. 31st: |
Dec. 31 | Interest Receivable 20 | Interest Income 20 |
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When you're closing Expense Accounts and Dividend Accounts, which entry are you DEBITING? |
Retained Earnings |
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When you're closing Revenue accounts, which entry do you DEBIT? |
Revenue Accounts |
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When you're closing Expense Accounts and Dividend Accounts, which entry are you CREDITING? |
The Expense account and the Dividend Account |
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Which entry do you CREDIT when you close a Revenue Account? |
Retained Earnings |
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What is the matching principle? |
says that a company has to match its expenses to it's related revenues |
