Accounting Coach- Debits and Credits
Terms in this set (24)
A record in the general ledger that is used to collect and store similar information. For example, a company will have a Cash account in which every transaction involving cash is recorded. A company selling merchandise on credit will record these sales in a Sales account and in an Accounts Receivable account.
Generally these types of accounts are increased with a debit:
Generally these types of accounts are increased with a credit:
Stockholders' (Owner's) Equity
Normal Credit or Debit Balance: Asset
Normal Credit or Debit Balance: Contra Asset
Normal Credit or Debit Balance: Liability
Normal Credit or Debit Balance: Contra Liability
Normal Credit or Debit Balance: Owner's Equity
Normal Credit or Debit Balance: Stockholder's Equity
Normal Credit or Debit Balance: Owners Drawing or Dividend Account
Normal Credit or Debit Balance: Revenues
Normal Credit or Debit Balance: Expenses
Normal Credit or Debit Balance: Gains
Normal Credit or Debit Balance: Losses
Also referred to as real accounts. Accounts that do not close at the end of the accounting year.
Consist of all of the balance sheet accounts (asset accounts, liability accounts, owner's equity accounts) except for the owner's drawing account.
Accounts that are closed at the end of each accounting year. Included are the income statement accounts (revenues, expenses, gains, losses), summary accounts (such as income summary), and a sole proprietor's drawing account.
Income summary account
A temporary account to which the income statement accounts are closed. This account is then closed to the owner's capital account or a corporation's retained earnings account. This and other summary accounts can be thought of as a clearing account.
each temporary account will have a zero balance when the next accounting year begins.
Because the balances in the temporary accounts are transferred out of their respective accounts at the end of the accounting year, _______________________________________________
customer deposits (or unearned revenues)
A liability account on the books of a company receiving cash in advance of delivering goods or services to the customer. The entry on the books of the company at the time the money is received in advance is a debit to Cash and a credit to.....
debit cash, credit deposits - under your account number (a liability)
When you deposit cash in the bank, what is the journal entry from the bank's perspective
A liability account in a bank's general ledger that indicates the amounts owed to bank customers for the balances in the customers' individual checking, savings, and certificate of deposit accounts.
credit: Deposits, debit: service revenues
Many banks charge a monthly fee on checking accounts. If Trustworthy Bank decreases Debris Disposal's checking account balance by $13.00 to pay for the bank's monthly service charge, this might be itemized on Debris Disposal's bank statement as a "debit memo." ...What is the Journal Entry
An asset account in a bank's general ledger that indicates the amount at which the bank is reporting or carrying its investments.
An asset account in a bank's general ledger that indicates the amounts owed by borrowers to the bank as of a given date.
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