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16 terms

Accounting 7.1 - 7.3

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What is the 3 line heading on a work sheet?
"Title Of Company"
Worksheet
For Month Ended "Date"
What is listed under the trial blance columns on the worksheet?
The total of all debit accounts that are equal to the total of all credit account balances
The Concept Of Matching Expenses With Revenus Relating To Adjustments
Any revenue that has expenses associated with it must be recorded in the same fiscal period
The four questions asked in analyzing an adjustment on a worksheet
1. What is the balance of account?
2. What should the balance be for this account?
3. How do you correct the amount balance?
4. What adjustment is made?
Accounts extended into the BALANCE SHEET
Assets (Cash, petty cash, AR, supplies, prepaid insurance)
Liabilities (AP)
Owner's Equity Accounts (Capital & Drawing)
Accounts extended into the INCOME STATEMENT
Revenue (Sales)
Expenses
Credit column of balance sheet
Where net income is recorded
Debit column of balance sheet
Where net loss is recorded
Fiancial information
Always summarized and reported at the end of a fiscal period
Worksheets are always prepared in
Pencil
All accounts
Listed in order from chart of accounts on the work sheet's trial balance
Recorded as debit to supplies expense
The value of supplies used during a fiscal period
Prepaid Insurance - Unused Insurance
Insurance coverage used during the fiscal period
Adjustments debit and credit columns of a worksheet
Must be the same
Total expenses - total revenue
Net loss
Total revenue - total expenses
Net income