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59 terms

Acct 110_2final

Price-Haddock-Farina McGraw-Hill/Irwin IBSN 9780073365497
STUDY
PLAY
2/10 net 30
...
a revenue account
Sales revenue
Individual customer balance is found
A/R is a subsid Ledger account
*formula for NET
sales-sale returns= net
A= L + OE
...
CORPORATION
goes forever
never mix or combine
tax business with personal
financial information needed by owners
analyzing and making informed decisions
CPA
SERVES public for fee
Fundamental Acct Equation
Assets = Liab + Owners eq
closing entry balance amount
ZERO
entry to close FEES INCOME?
DEB-fees income
CRED-income summ
DEBITS equal CREDITS WHEN
THE trial balance in IN BALANCE
ENTRY TO record depr expense?
DEB-depr. exp
CRED-accum depr
entry to CLOSE (E2CL/e2cl) -owner's draw
deb owners cap
cred owners draw
adj entry for use of supplies is
deb supp exp
cred supp
*gross profit sales
= net sales - cost of goods sold
gross pay
Total compensation before deductions
long term assets:
equipment buildings, land, PPE
*Current assets account is a
an asset on the classified bal sheet
net pay
earnings - deductions
owner's capital stays open during the
closing process
*ZERO BAL accounts:
REVENUE, EXPENSES, COST OF GOODS
CALC OVERTIME
1 1/2 TIME
FED UNEMP TAX
employer pays
form 941 is filed
quarterly
940 is filed
once per year to report FUTA taxes
*record pay of SUTA tax
deb payroll suta expense
cred cash
*record at payroll SUTA
DEB PAYROLL TAX EXP
CRED suta payable
salaries exp, pay tax exp >>THEN PAYABLE ACCTS: cash or net pay; FUTA pay; SUTA pay; FIC pay
...
FIC is withheld from EMPLOY
REC AS: employ income tax pay or
Fed income tax pay
*MEDICARE TAX RATE; 50/50
1.45
*SOCIAL SEC RATE; 50/50
6.2
RESTRICTED endorsement check or for dep only
most protection
reconcile OUTSTANDING CHECKS:
from Bank Bal
rec purch merch on credit
deb merch
cred accts pay
single step income state
lists all revenues in one income statement
post closing trial bal accts:
A. L. OE
*CALC current ratio:
current ASSETS {divided by}
current LIABILITIES
GEN LEDGER ACCT ORDER:
ASSETS Perm-temp
BAL SHEET
INCOME STATEMENT
assets, liab, rev, exp
Post a CORRECTING ENTRY
TO adjust an error
ASSET ACCTOUNTS
ARE increased by DEBITS L+L+L+
CREDIT ACCOUNTS (liab, rev, OE)
INCREASED BY credits R+R+R+
INCREASES 2 OE:
sales, revenue and income
Ending CAPITAL ACCT BAL IS ON:
STATEMENT of OE
BAL SHEET
BAL SHEET
SNAP SHOT @ given time
net loss - simple
expenses EXCEED rev.
MERCH INVENTORY IS ON:
INC STATE
BAL SHEET
ALLOW FOR DOUBTFUL ACCTS IS ON:
CURRENT ASSETS, BAL SHEET
subtracted from A/r and RECORDED on current assets on the bal sheet
bad debt entry
deb uncollect acct expense
cred allow for doubt accts
BAD DEBT IS AN ASSET
ON BALANCE SHEET
accrued interest on notes pay
deb interest exp
cred interest pay
reversing entry
1 day after close of new period
accrued income
Income learned but not yet recieved
unearned income
received but not earned, interest
ss & medicare
50/50 tax
Purchases account is:
a TEMP & C.O.G.S.
SPECIAL JOURNAL: merchandise is
purch journal
SP. JOURNAL: to record a check to a supplier:
cash payments