an equation showing the re;ationship among assets, liabilities, and owner's equity.
a columnar accounting form used to summarize the getneral ledger information needed to prepare financial statements
Accounts used to accumulate information until it is transferred to the owner's capital account.
a financial statement that reports assets, liablities, and owner's equity on a specific date
journal entries recorded to update general ledger accounts at the end of a fiscal peirod
The posting reference should always be recorded int he journal's Post. Ref. column before amounts are recorded in the ledger.
Making adjustments to general ledger accounts is an application of the Matching Expenses with Reveue accounting concept.
Net income on a work sheet is calculated by subtracting the Income Statement Credit column total from the Income Statement Debit column total.
The formula for calculating the toal expenses compenet percentage is total expenses divided by total sales equals total expenses component percentage.
The current capital to be reporte don abalance sheet is calulated as the capital account balance plus net income equals current capital.
The blances of the expense accounts must be reduced to zero to prepare the accounts for the next fiscal period.
the post reference number in the Post Ref column of the Journal
The last step in the posting procedure is writing
The bank statement shows an account balance of $5,500. There are outstanding checks totaling $600 and an outstanding deposit of $400. The adjusted bank balance should be
Accounting Period Cycle
Prepareing financial statements at the end of each monthly fiscal period is an application of the accounting concept
value of supplies used during the fiscal period
after the adjusting entry for Supplies has been psoted, Supplies Expense has an up-to-date balance that is the
value of insurance premiums used during the fiscal period
After the adjusting entry for Prepaid Insurance has been posted, Insurance Expanese has an up-to-date balance that is the
debit Income Summary for the total expenses; credit each expense account
The journal entry to close the expense accounts is
An endorsement on the back of a check indicating that the check is to be accepted for deposit only is a
Net cinome divided by total sales equals net income component percentage
The formula for calculating the net income component percentage is