Create an account
an information system that provides reports t sers about the economic activities and condition of a business
a business that sells products they purchse from other businesses to customers
a business that changes raw materials into products that are sold to customers
___ ___ ____ what i do as a business and hwat i do personally must be kept seperate. If owning 2 business those must be kept seperate
business entity concept
___ ____ : i have to record this business transaction at whatever dollar amoun that business transaction occured. record what you buy and sell them for
___ ____ ___: everything is used in the currency that the company is based in
monitary unit assumption
_____ more than 1 person formin a business
-still have unlimited liability
partnership agreement: still have to divide up profits and loses
List the steps for preparing an income statement
heading: name of company
year end date 12/31/12
- fees earned
- Total expenses
- Net income (fees earned - total expenses)
list the steps for preparing statement of owers equity
ADD: net income
list the steps for preparing a balance sheet
Cash: ACC PAY:
ACC REC: TABER CAPITAL
TOTAL ASSETS: OWNER EQUITY(ACC PAY + PAY CAPITAL)
a ___ ____ uses all the numbers from the balances of the spread sheet or the balances from the t accounts
List the steps for making a unadjusted trial balance
Heading: trail balance
Totals for both debit and credit
On April 25, Gregg Repair Service extended an offer of $115,000 for land that had been priced for sale at $140,000. On May 3, Gregg Repair Service accepted the seller's counteroffer of $127,000. On June 20, the land was assessed at a value of $88,000 for property tax purposes. On August 4, Gregg Repair Service was offered $150,000 for the land by a national retail chain. At what value should the land be recorded in Gregg Repair Service's records?
If total liabilities decreased by $55,000 during a period of time and owner's equity increased by $60,000 during the same period, the amount and direction (increase or decrease) of the period's change in total assets is
The assets and liabilities of the company are $175,000 and $40,000, respectively. Owner's equity should equal
Allen Marks is the sole owner and operator of Great Marks Company. As of the end of its accounting period, December 31, 2011, Great Marks Company has assets of $940,000 and liabilities of $300,000. During 2012, Allen Marks invested an additional $65,000 and withdrew $45,000 from the business. What is the amount of net income during 2012, assuming that as of December 31, 2012, assets were $995,000, and liabilities were $270,000?
A business paid $7,000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to
decrease an asset, decrease a liability
Denzel Jones owns and operates Crystal Cleaning Company. Recently, Denzel withdrew $18,000 from Crystal Cleaning, and he contributed $14,000, in his name, to Habitat for Humanity. The contribution of the $14,000 should be recorded on the accounting records of which of the following entities?
Denzel Jones' personal records and Habitat for Humanity
Donner Company is selling a piece of land adjacent to their business. An appraisal reported the market value of the land to be $120,000. The Focus Company initially offered to buy the land for $107,000. The companies settled on a purchase price of $115,000. On the same day, another piece of land on the same block sold for $122,000. Under the cost concept, what is the amount that will be used to record this transaction in the accounting records?
Land, originally purchased for $20,000, is sold for $75,000 in cash. What is the effect of the sale on the accounting equation?
assets increase $55,000; owner's equity increases $55,000
Clifford Moore is starting his computer programming business and has deposited in initial investment of $15,000 into the business cash account. Identify how the accounting equation will be affected.
Increase Assets (Cash) and increase Owner's Equity (Clifford Moore, Capital)
Prarie Clinic purchased X-ray equipment for $4,000, paid $1,275 down, with the remainder to be paid later. The correct entry would be
accountd payable 2725
Which of the following accounts would be increased with a credit?
Accounts Payable, Unearned revenue, Collins Capital
Which of the following entries records the investment of cash by Ron York, owner of a proprietorship?
debit Cash; credit Ron York, Capital
The payment for the monthly rent will require the following entry
Debit Rent Expense and Credit Cash
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