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acct..
acct. exam 2 make up
| Question | Answer |
|---|---|
| the journal entry to record depreciation consists of | a debit to Depreciation Expense and a credit to Accumulated Depreciation |
| The Journal entry to record the amount of salaries that a company plans to pay next month or next period consists of | a Debit to Wages/Salaries Expense and a Credit to Wages/Salaries Payable |
| The Journal entry to record interest revenue (first, calculate interest per month)consist of | a Debit to Interest Receivable and Credit to Interest Revenue |
| The Journal entry to record the purchase of merchandise under the perpetual inventory system consists of | a Debit to Inventory and a Credit to Cash |
| The Journal entries to record the sale of merchandise consist of | 1st) A Debit to Cash/Accounts Receivable and a Credit Sales. 2nd) A debit to Cost of Goods Sold and a Credit to Inventory |
| The First three lines on an Income Statement of a manufacturing company include | Sales - Cost of Goods Sold = Gross Profit |
| What type of account is Unearned Revenue | a liability account; |
| What type of account is Cost of Goods Sold | an expense account; |
| What type of account is Prepaid Expenses | an asset account; has a debit balance |
| What type of account is Sales discounts and sales returns and allowance | a contra-revenue account |
| What is the normal balance for Depreciation | a debit balance |
| What is the normal balance for Cost of Goods Sold | a debit balance |
| What is the normal balance for Unearned Revenue | a credit balance |
| What is the normal balance for Prepaid Expenses | a debit balance |
| What is the purpose of closing entries | 1)to return the balances of the temporary owners' equity accounts to zero so that these accounts may be used to measure the activities of the next accounting period. 2) to update the balance of the Retained Earnings account |
| What are the 4 closing entries needed | 1)close revenue accounts to Income summary. 2) close expense accounts to Income summary. 3) close Income summary to Retained Earnings. 4) close Dividends to Retained Earnings |
| What are the types of Temporary Accounts | Revenues, expenses, and dividends |
| What are the types of Permanent Accounts | Retained earnings and other balance sheet accounts |
| how do sales discounts and allowances affect the income statement | reduce net profit |
| what is the purpose of adjusting entries | to record revenues and expenses that were not properly measured |
Created by:
gpolite
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