27 terms

T accounts

STUDY
PLAY
Calculate Net Income
revenue-expenses
What is revenue
sales, the money made off of the product or service sold.
T Account- Revenue
credit
T Account-Salary Expenses
Debit
T Account- Pre-paid Rent
Debit
T Account- Unearned revenue
credit
T Account- Notes payable
credit
T Account- Salaries Payable
credit
Paid cash for $4,000 of salaries expenses.
Credit cash, debit salaries expenses
Received $20,000 cash by issuing common stock.
Debit cash, credit common stock
Purchased supplies for $900 cash.
Debit supplies, credit cash
Performed services on account for $7,000.
Debit accounts receivable, credit service revenue
FOB shipping point
Buyer pays the shipping charge
FOB destination
Supplier pays the shipping cost
cost of goods sold
the total cost of merchandise sold during the period
product cost
the amount paid to suppliers for products that are purchased.
Calculate retained earnings
previous year RE+ net income of current year-dividends of current year= RE
T Accounts- dividends
debit
T Accounts- Settle accounts payable
debit
Return on equity
net income/stockholders equity
(the higher the number the more profitable the company)
calculate debt ratio
total debt/total assets
(the higher the number the higher the risk)
calculate gross margin
sales revenue- cost of goods sold
T Accounts- Cash
debit
T Accounts- Supplies
debit
T Accounts- Accounts payable
credit
T Accounts- Land
debit
T Accounts- ASSETS
DEBITS