Mr' Grimes Accounting

1
Mr. Grimes Accounting

• Ch1
• Ch 2
• Ch3
• Ch4
• Ch5
• Ch6
• Ch7
• Ch8
• Ch9
• Ch10

• Ch 11
• Ch 12
• Ch 13

2
Ch 13Back to Main

• 13-1 Preparing Payroll Time Cards
• 13-2 Determining Payroll tax
• 13-3 Preparing payroll records
• 13-4 Preparing Payroll Checks

3
13-1 Preparing Payroll Time Cards

• Salary
• Pay Period
• Payroll
• Total Earnings
• Back to Ch 13

4
Salary

• Money paid for employee services is called a
  salary.
• Back to Ch 13

5
Pay Period

• The period covered by a salary payment is called
  a pay period.
• Day, Week, bi monthly, monthly, yearly.
• Back to Ch 13

6
Payroll

• The total amount earned by all employees for a
  pay period is called a payroll. The payroll is
  reduced by state and federal taxes and other
  deduction, such as health insurance, to determine
  the amount paid to all employees.
• Back to Ch 13

7
Total Earnings

• Once the total regular and overtime hours are
  determined, employee earnings can be calculated .
  The total pay due for a pay period before
  deductions is called total earnings.
• Also called Gross Pay
• Back to Ch 13

8
13-2 Determining Payroll tax

• Payroll Taxes
• Withholding Allowance
• Social Security Tax
• Medicare Tax
• Tax Base
• Back to Ch 13

9
Payroll Taxes pg 316

• A business is required by law to withhold certain
  payroll taxes from employee salaries. All payroll
  taxes are based on employee total earnings.
• Back to 13-2

10
Withholding Allowance

• A deduction from total earnings for each person
  legally supported by a taxpayer, including the
  employee.
• Employers are required to have on file a current
  Form W-4 for all employees. The amount of income
  taxes withheld is based on employee martial
  status and number of withholding allowances.
• Back to 13-2

11
Social Security Tax

• A federal tax paid for old-age, survivors, and
  disability insurance.
• Back to 13-2

12
Medicare Tax

• A federal tax paid for hospital insurance.
• Each Social Security and Medicare is accounted
  for and reported separately.
• Back to 13-2

13
Tax Base

• The maximum amount of earnings on which a tax is
  calculated is called a tax base.
• Back to 13-2

14
13-3 Preparing payroll recordspg 322

• Payroll Register
• Net Pay
• Employee earnings record
• Back to Ch 13

15
Payroll Register

• A business form used to record payroll
  information. Summarized the payroll of one pay
  period and shows total earnings, payroll
  withholdings, and net pay of all employees.
• Back to 13-3

16
Net Pay

• The total earnings paid to an employee after
  payroll taxes and other deductions. Subtract the
  total deductions, column 9, from total earnings,
  column 3,
• Back to 13-3

17
Employee earnings record

• Form used to record details affecting payments
  made to an employee. Earnings and deductions for
  each pay period are summarized on one line.
• Back to 13-3

18
13-4 Preparing Payroll Checks

• General Account
• Payroll Account
• Back to Ch 13

19
General Account

• Special Payroll checking account. It is separate
  to protect and control payroll payments. Only the
  exact amount is deposited to cover the
  outstanding checks.
• Go to Check

20
Payroll Account

• The information is taken from the payroll
  register. It has a detachable stub for recording
  earnings and amounts deducted. Employees keep the
  stub for a recorded of deductions and cash
  received.
• Go to Check

21
General Account Back13-4
22
Payroll account Back13-4
23
Chapter 12Posting to General and Subsidiary
AccountsBack to Main

• 12-1
• 12-2
• 12-3
• 12-4
• 12-5
• 12-6

• Subsidiary Ledger
• Accounts Payable ledger
• Accounts Receivable ledger
• Controlling account

24
Subsidiary Ledger pg 272

• A ledger that is summarized in a single general
  account.
• Back to Ch 12

25
Accounts Payable ledger pg 272

• A subsidiary ledger containing only accounts for
  venders from whom items are purchased or bought
  on account.
• Back to Ch 12

26
Accounts Receivable ledger

• A subsidiary ledger containing only accounts for
  charge customers
• Back to Ch 12

27
Controlling account is

• An account in a general ledger that summarizes
  all accounts in a subsidiary ledger.
• Back to Ch 12

28
12-1pg 275-76

• Accounts payable ledger forms.
• 1. Vendor name, vender
• Normal balance (Credit)
• Posting from a purchase journal to an a/p ledger.
• Transfer date, PJ page Credit amount, enter
  balance on A/P post vender
• Back to Ch 12

29
12-2 pg 281

• Schedule of Accounts payable is
• A listing of vendors accounts, account balances
  and total amount due all vendors. It is prepared
  after all entries in a journal are posted.
• Back to Ch 12

30
12-3 Pg 283Posting to an Accounts Receivable
Ledger

• Assign each A/R Customer a 3 digit number
  starting _at_ 100-199. The digit 1 tells you it is
  an Asset.
• From a sales journal you will make a A/R ledger
  and transfer the debit. Followed by posting the
  customer number back to the Sales Journal.
• Back to Ch 12

31
12-4 Additional Postingsto A/R Ledger pg, 287

• A listing of customer accounts, account balances,
  and total amount due from all customers is called
  a schedule of accounts receivable.
• Back to Ch 12

32
12-5 Posting from Journal to a General Ledger pg
291

• Back to Ch 12

33
12-6

• Back to Ch 12

34
Chapter 10 Journalizing Purchases and cash
payment using special journals Back to Main
Pg

• 10-1 Journalizing Purchases using a Purchases
  Journal
• 10-2 Journalizing Cash Payment using a Cash
  Payments Journal
• 10-3Performing Additional Ach Payments journal
  operations.
• 10-4 Journalizing Other Transactions using a
  General Journal

35
10-1 Journalizing Purchases using a Purchases
Journal

• Merchandising Business
• Retail Merchandising Business
• Merchandise
• Wholesale Merchandising Business
• Special Journal

• Cost of Merchandise Markup
• Vender
• Purchases Journal
• Special Amount column
• Purchase Invoice
• Back to Ch 10

36
Merchandising Business

• A Business that purchases and sells goods is
  called a Merchandising Business
• Back to 10-1

37
Retail Merchandising Business

• A Merchandising Business thats sells to those
  who use or consume the goods is called a Retail
  Merchandising Business
• Back to 10-1

38
Merchandise

• Good that a merchandising business purchases to
  sell are called Merchandise.
• Back to 10-1

39
Wholesale Merchandising Business

• A business that buys and resells merchandise to
  retail merchandising businesses is called a
  wholesale merchandising business
• Back to 10-1

40
Special Journal

• A journal used to record only one kind of
  transaction is called a special Journal.
• Examples are Purchases journal, Cash payments,
  sales, cash receipts, general journal.
• Back to 10-1

41
Cost of Merchandise Markup

• The price a business pays for good is purchase to
  sell is called cost of merchandise.
• Markup The amount added to the cost of
  merchandise to establish the selling price is
  called markup.
• Back to 10-1

42
Vender

• A business from which merchandise is purchased or
  supplies or other assets are bought is called a
  vendor.
• Back to 10-1

43
Purchases Journal

• A special journal used to record only purchases
  of merchandise on account is called a purchases
  journal.
• Accounts Payable
• Debit Credit.
• Down Up
• Back to 10-1

44
Special Amount column

• Used for frequently occurring transaction.
• Back to 10-1

45
Purchase Invoicepage 225

• Describing the good sold, the quantity, and the
  price is known as an invoice.
• Back to 10-1

46
10-2 Journalizing Cash Payment using a Cash
Payments Journal

• Cash Payments
• General Amount Column
• Back to Ch 10

47
Cash Payments Back to 10-2

• A special Journal used to record cash payment
  transaction is called a cash payments journal. To
  designed to accommodate a businesss frequent
  cash payment transaction.

48
General Amount Column

• A journal amount column that is not headed with
  an account title is called a general amount
  column.
• Back to 10-2

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(No Transcript)
50
Chapter 11Page 254-265

• 11-1Journalizing Sales on Account using a Sales
  Journal
• 11-2 Journalizing Cash Receipts Using a Cash
  Receipts Journal
• Back to Main Page

51
11-2 Journalizing Cash Receipts Using a Cash
Receipts Journal

• Cash Sales
• Credit Card Sale
• Cash Receipts
• Totaling, proving and ruling a cash receipts
• Proving Cash at the end of a month

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Cash Sales

• A sale in which cash is received for the total
  amount of the sale at the time of the transaction
• Back to Ch 11.2

53
Credit Card Sale

• A sale in which a credit card is used for the
  total amount of the of the sale at the time of
  the transaction.
• Back to Ch 11.2

54
Cash Receipts Journal

• A special journal used to record only cash
  receipts transactions.
• Back to Ch 11.2

55
Totaling, proving and ruling a cash receipts pg
262

• General Debit
• General credit
• Accounts receivable credit
• Sales Credit
• Sales tax payable credit
• Cash debit
• Totals
• Back to Ch 11.2

56
Proving Cash at the end of a month pg 263

• Cash on hand at the beginning of the month
• Plus total cash received during the month
• Equals total
• Less total cash paid during the month
• Equals cash balance on hand at the end of the
  month.
• Checkbook balance on the next unused check stub
• Back to Ch 11.2

57
11-1Journalizing Sales on Account using a Sales
Journal Back to Ch 11

• Sales Journal is a special journal used to record
  only sales of merchandise on account.

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Chapter 9 Recording adjusting and closing entries
for a service business.

• 9-1 Adjusting Entries
• 9-2 Permanent Accounts
• 9-2Temporary accounts
• 9-2 Closing entries
• 9-2 Income summary
• 9-3 Post Closing trial balance
• 9-3 Accounting Cycle
• 9-3 cycle
• Back to Main Page

59
9-1 Adjusting Entries pg 192 BACK

• Journal entries recorded to update general ledger
  accounts at the end of the fiscal period are
  called adjusting entries.
• Examples are Supplies and Prepaid Insurance.

60
9-2 Permanent accounts pg 197BACK

• Accounts used to accumulate information from one
  fiscal period to the next are called permanent
  accounts. Also referred to as real accounts,
  Permanent accounts include the asset and
  liability accounts and the owner capital
  account. The ending account balances of
  permanent accounts for one fiscal period are the
  beginning account balance for the next fiscal
  period.

61
9-2 Temporary Accounts pg 197BACK

• Accounts used to accumulate information until it
  is transferred to the owner capital account are
  called temporary accounts. Also referred to as
  nominal accounts. They includeRevenue, expense,
  and owners' drawing accounts, Income summary.
  Temporary accounts show changes in the owners
  capital for a single fiscal period. Temp accounts
  begin each new fiscal period with a zero balance

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9-2 Closing entries pg 197 BACK

• Journal entries used to prepare temporary
  accounts for a new fiscal period are called
  closing entries. Temporary account balances must
  be reduced to zero at the end of each fiscal
  period.

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Income summary pg 198 BACK

• Does not have a normal balance side.

Place expenses here Advertising, Insurance,
Misc. rent, supplies utilities.
64
9-3 Post Closing trial balance pg 207 BACK

• After the closing entries are posted, verify that
  debits equal credits in the general ledger
  accounts by Post Closing Trial Balance.
• These are permanent accounts

65
9-3 Accounting CycleBACK

• The series of accounting activities included in
  recording financial information for a fiscal
  period is called an accounting cycle.

66
Cycle Pg 208 BACK

• Analyze Transactions
• Journalize ( General Journal)
• Post ( General Ledger)
• Prepare Worksheet
• Prepare financial statements
• Journalize adjusting and closing entries
• Post adjusting and closing entries
• Prepare Post closing trail balance

67
Ch 5 Posting from a General Journal to a General
LedgerPages 94-109 Back to Main

• Ledger
• General Ledger
• Account Number
• File Maintenance

• Opening an account
• Posting
• Proving Cash
• Correcting entry

68
Ledger pg 97

• A group of accounts is called a ledger.
• Back

69
General Ledger pg 97

• A ledger that contains all accounts needed to
  prepare financial statements is called a general
  ledger.
• Back

70
Account Number pg 97

• The name given to an account is known as an
  account title. The number assigned to an account
  is called an account number
• Back

71
File Maintenance pg 98

• The procedure for arranging accounts in a
  general ledger, assigning account numbers, and
  keeping records current is called file
  maintenance.
• Back

72
Opening an account pg 99

• Writing an account title and number on heading of
  an account is called opening an account.
• Back

73
Posting Pg 101

• Transferring information from a journal entry to
  a ledger account is called posting. Posting sorts
  journals entries so that all debits and credits
  affecting each account are brought together in
  one place
• Back

74
Proving Cash pg 109

• Determining that the amount of cash agrees with
  the balance of the cash accounting the
  accounting records is called proving cash
• Back

75
Correcting entry pg 109

• A journal entry made to correct an error in the
  ledger is called a correcting entry.
• Back

76
Chapter 3

• 3-1 Using T Accounts pg 42
• 3-2 Analyzing How Transactions Affect Accounts
• Back to Main

77
Chapter 8Financial Statements for a
proprietorship

• Component Percentage
• Owners Capital
• Back to Main Page

78
Component Percentage pg 178

• On an income statement, component percentages are
  calculated by dividing the amount of each
  component by the total amount of sales.
• Back

79
Owners Capital Pg 184

• Capital is not copied from the work sheet to the
  balance sheet. Capital is calculated using
  beginning capital, plus net income or minus net
  loss, minus drawing.
• Back

80
3-2 Analyzing How Transactions Affect Accounts

• Four (4) questions
• 1) Which accounts are affected?
• 2) How is each account classified?
• 3)How is each classification changed?
• 4) How is each amount entered in the accounts?
• Back to Ch 3

81
Ch 3.1

• T Accounts
• Normal Balance
• Debit Credit

• Increase and Decrease in Accounts
• 3.1 Assignment pg 44 Work together and On your
  own.
• Back to Ch 3

82
T Accounts pg 42

• Accounting transactions must be analyzed to
  determine how account balances are changed. An
  accounting device used to analyze transactions is
  called a T account
• 3.1

83
Normal Balance

• The side of an account that is increased is
  called the normal balance. For assets, the normal
  balance side (increase) is the Debit side.
• For Liability Owner EQ the normal balance side
  (increase) is the credit side.

84
Debit Credit

• An amount recorded on the left side is called a
  Debit. An amount recorded on the right side is
  called a credit.
• Abbreviated dr for debit and cr for credit

85
Increase and Decrease in Accounts

• Assets Debit/Credit
• Liability and Owners Equity Debit/Credit

86
Any Assets

• Debit
• Normal Balance
• Increases

• Credit
• Decreases

87
Liability and Owners Equity Debit/CreditAny
Liability
88
Ch 1

• 1.1 The Accounting Equation pg 6
• 1.2 How Business Activities change the accounting
  equation pg 9
• 1.3 Reporting Financial Information on a balance
  sheet pg 13

89
Ch 1.1

• Vocabulary words
• Main Points
• Test yourself

90
Vocabulary WordsSay them to yourself then click
for your answer.

• Accounting
• Asset
• Equities
• Liability
• Owner Equity
• Accounting Equation
• Proprietorship

• Service Business
• Transaction
• Account
• Account Title
• Account Balance
• Capital

91
Accounting

• Planning recording, analyzing and interpreting
  financial information is called accounting.

92
Assets

• Anything of value owned is called an Asset.

93
Equities

• Financial rights to the assets of a business are
  called Equities. A business has two types of
  equities.
• Equity of those to whom money is owed
• Equities to the owners

94
Liability

• An amount owed by a business is called a
  liability

95
Owners Equity

• The amount remaining after the value of all
  liability is subtracted from the value of all
  assets is called owners equity.

96
Accounting Equation

• The relationship among assets, liabilities and
  owners equity can be written as an equation.
• Assets Liabilities Owners Equity

97
Service Business

• A business that performs and activity for a fee
  is called a service business.

98
Proprietorship

• Also called a sole Proprietorship when owned by
  one individual.
• Other forms
• Partnership where two or more individuals share
  equally the profit and loss.
• Corporation. Individuals are officers and have
  limited liability as long as they operative as a
  corporation.

99
Ch 1.1 Main Points

• Income Statement
• Statement of Owner Equity
• Balance sheet

100
Income Statement

• A summary of the revenue and expenses of a
  business entity for a specific period of time.
  Such as a month or a year. If total revenues for
  the period in question exceed total expenses. The
  result is net income or profit. If total expenses
  exceed total revenues, the result is net loss.
• 1.1 Main Points Back

101
Statement of Owner Equity

• A Summary of the changes in the owners equity of
  a business entity for a specific period of times,
  such as a month or a year. In a corporation, the
  emphasis is on reports of changes in retained
  earning. Those changes are reported in the
  retained earning statement.
• 1.1 Main Points Back

102
Balance sheet

• A list of the assets, liabilities and owners
  equity of a business entity as of a specific
  dates, usually at the close of the last day of a
  month or a year. Assets are usually listed first
  , followed by a list of liabilities and a section
  detailing owners equity.
• 1.1 Main Points Back

103
Ch 1 QuizMatch Game

• Accounting is

• A. Planning, Recording, Analyzing and
  interpreting financial information.
• B. Anything of Value

104
You are Correct!
105
Try again.

• Go back to the vocabulary page to review

106
1.2 How Business Activities change the accounting
equation pg 9

• 1.2 Vocabulary
• 1.2 Homework

107
1.2 Homework

• Pg 12 On your Own 5

108
1.2 Vocabulary

• Transaction
• Account
• Account Title
• Account Balance
• Capital

109
Transaction
A Business activity the changes assets,
liabilities, or owners equity is called a
Transaction.
110
Account
A record summarizing all the information
pertaining to a single item in the accounting
equation is called an Account
111
Account Title
The name given to an account is called an account
title.
112
Account Balance

• The amount in an account is called the Account
  Balance.

113
Capital

• The account used to summarize the owners equity
  in a business is called Capital

114
1.2 Homework
115
1.2 Main Points
116
1.3 Reporting Financial Information on a balance
sheet pg 13

• Vocabulary
• 1.3 Class work

117
1.3 Class Work

• Page 19 Assignment 1-6 Make an Excel spread
  sheet.

118
1.3 Vocabulary

• Balance Sheet

119
Balance Sheet

• A financial statement that reports assets,
  liability and owners equity on a specific date
  is called a balance sheet.

120
1.3 Quiz

• List the three sections of a balance sheet
• What kinds of accounts are listed on the left
  side of a balance sheet
• What kinds of accounts are listed on e right side
  of the balance sheet.
• What should be done if a balance sheet is not in
  balance.

121
List the three sections of a balance sheet
Assets Liability Owners Equity
122
What kinds of accounts are listed on the left
side of a balance sheet
Assets like Cash, supplies, prepaid insurance
123
What kinds of accounts are listed on e right side
of the balance sheet.
Liabilities Owners Equity Like Accounts
payable, owner capital
124
What should be done if a balance sheet is not in
balance.
Look back for one entry without a second entry.
125
Accounting

• Back

126
Service Business

• Back

127
ProprietorshipBack
128
AssetBack
129
EquitiesBack
130
Liability Back
131
Owner equity Back
132
Account equation Back
133
Transaction Back
134
Account
135
Capital
136
Capital
137
Account Title
138
Account Balance
139
Main Points

• Income Statement
• Statement of Owners equity
• Balance Sheet
• Back to Ch 1

140
Income Statement

• A summary of the revenue and expenses of a
  business entity for a specific period of time,
  such as a month or a year. If total revenues for
  the period in question exceeds total expenses,
  the result is net income (or net profit). If
  total expenses exceed total revenues, the result
  is a net loss.
• Back to Ch 1main Page

141
Statement of Owners equity

• A summary of the changes in the owners equity of
  a business entity for a specific period of time,
  such as a month or a year. In a corporation, the
  emphasis is on reports of changes in retained
  earning (net income retained in the business).
  Those changes are reported in the retained
  earnings statement.
• Return to Ch 1 Main Points

142
Balance Sheet

• A list of the assets, liabilities and ownerss
  equity of a business entity as of a specific
  date, usually at the close of the last day of a
  month or a year. Assets are usually listed first,
  followed by a list of liabilities and a section
  detailing owner's equity.
• Return to Ch 1 Main Points

143
Chapter 2

• 2.1 How Transactions change Owners Equity in an
  accounting Equation
• 2.2 Reporting a Changed Accounting Equation on a
  Balance Sheet

144
2.1 How Transactions change Owners Equity in an
accounting Equation

• Vocabulary
• Revenue
• Sale on Account
• Expense
• Ch 2 page

• Assignments

145
Assignment 2.1

• How is owners equity affected when cash is
  received from Sales
• How is owners equity affected when services are
  sold on account
• How is owners equity affected when cash is paid
  for expenses
• Pg 29, work together and On your own.
• Back CH 2.1

146
Revenue

• A transaction for the sale of goods or services
  results in an increase in owner's equity. An
  increase in owners equity resulting from the
  operation of a business is called Revenue.
• Ch 2 Vocabulary

147
Sale on Account

• A sale for which cash will be received at a later
  date is called a sale on account, or a charge
  sale
• Ch 2.1 Vocabulary

148
Expense

• A decrease in owners equity resulting from the
  operation of a business is called an expense.
• Ch 2.1 Vocabulary

149
2.2 Reporting a Changed Accounting Equation on a
Balance Sheet
150
Chapter 6

• Checking Account
• Endorsement
• Blank Endorsement
• Special Endorsement
• Restrictive Endorsement
• Back to Main Page

• Bank Statement
• Petty Cash

151
Petty Cash

• The amount of cash kept on hand and used for
  making small payments. A business usually has
  some small payments for which writing a check is
  not time or cost effective.
• Back to Ch 6

152
Bank Statement

• A report of deposits, withdrawals, and bank
  balances sent to a depositor by a bank.
• Back to Ch 6

153
Checking Account

• A business form ordering a bank to pay cash from
  a bank account is known as a check. A bank
  account from which payments can be ordered by a
  depositor is called a Checking Account.
• Back to Ch 6

154
Endorsement

• A signature or stamp on the back of a check
  transferring ownership is called an endorsement
• Back to Ch 6

155
Blank Endorsement

• An endorsement consisting only of the endorsers
  signature is called a blank endorsement.
• Back to Ch 6

156
Special Endorsement

• An endorsement indication a new owner of a check
  is called a special endorsement.
• Pay to the order of and the name of the new
  check owner. Only the person or business named in
  a special endorsement can cash, deposit or
  further transfer ownership of the check
• Back to Ch 6

157
Restrictive Endorsement

• An endorsement restricting further transfer of a
  checks ownership is called restrictive
  endorsement.
• Many businesses have a stamp prepared with a
  restrictive endorsement
• Back to Ch 6

158
Chapter 4 Back to Main
Page

• 4-1 Journals, Source Documents, and Recording
  Entries in a Journal.
• 4-2Journalizing Buying Insurance, Buying on
  Account, and Paying on Account
• 4-3 Journalizing Transaction that affect owners
  equity and receiving Cash on Account
• 4-4 Starting a New Journal Page

159
4-2 Journalizing Buying Insurance, Buying on
Account, and Paying on Account
160
4-3 Journalizing Transaction that affect owners
equity and receiving Cash on Account
161
4-4 Starting a New Journal Page
162
Chapter 4-1

• Entry
• General Journal
• Double Entry Accounting
• Source Document

• Check
• Invoice
• Sales Invoice
• Recipe
• Memorandum
• Assignments

163
Assignments

• Pg 71 Work together On your own.

164
Entry Back to 4-1 Ch 4

• Information for each transaction recorded in a
  journal is called an entry

165
General Journal Back to 4-1 Ch 4

• A journal with two amount columns in which all
  kinds of entries can be recorded is called a
  General Journal

166
Double Entry Accounting Back to 4-1 Ch 4

• The recording of debit and credit parts of a
  transaction is called double-entry accounting

167
Source Document Back to 4-1 Ch 4

• A business paper from which information is
  obtained for a journal entry is called a source
  document

168
Check Back to 4-1 Ch 4

• A business form ordering a bank to pay cash from
  a bank account is called a check

169
Invoice Back to 4-1 Ch 4

• A form describing the goods or services sold, the
  quantity, and the price is called an invoice

170
Sales Invoice Back to 4-1 Ch 4

• An invoice used as a source document for
  recording a sale on account is called a sales
  invoice.

171
Recipe Back to 4-1 Ch 4

• A business form giving written acknowledgement
  for cash received is called a receipt.

172
Memorandum Back to 4-1 Ch 4

• A form on which a brief message is written
  describing a transaction is called a Memorandum.

173
Ch 7Back to Main

• Fiscal Period
• Work Sheet
• Trial Balance
• Adjustments
• Income Statement
• Net Income

174
Fiscal PeriodBack to Ch 7

• The length of time for which a business
  summarizes and reports financial information.
• Pg 150

175
Work Sheet Back to Ch 7

• Pg 150
• A columnar accounting form used to summarize the
  general ledger information needed to prepare
  financial statements.

176
Trial Balance Back to Ch 7

• Pg 151
• The total of all debit accounts balances must
  equal the total of all credit account balances.
  A proof of the equality of debit and credits in a
  general ledger is called a Trial Balance

177
Adjustments Back to Ch 7

• Pg 154
• Changes recorded on a work sheet to update
  general ledger accounts at the end of a fiscal
  period.
• Recorded in Balance Sheet as whats left. Then
  record what was used up in the Adjustment
  columns.

178
Income Statement Back to Ch 7

• Pg 160
• A financial statement showing the revenue and
  expenses for a fiscal period.
• Record Sales as a Credit and expenses as a Debit.
  
• Debit side larger means net loss.
• Credit side larger means Net Profit

179
Net Income Back to Ch 7

• Pg 161
• The difference between total revenue and total
  expenses when total revenue is greater is called
  net income.
• Total expenses higher then its called net loss.