There are three more working days in January (29-31). 27 terms. Which of the following is considered a production/operations business function? Accounts Receivable, Prepaid Accounts, Supplies, and Land are examples of ________ accounts. c. Can you determine the overall probability that an American person is widowed from these data alone? Which one of the following is not a justification for adjusting entries? value Unearned Rent was credited for the full $15,000. Checking Account Terms. revenue accounts, expense accounts, Income Summary, drawing account, The steps involved in handling all of the transactions and events completed during an accounting period, beginning with placing data in a book of original entry and ending with a post-closing trial balance, are referred to collectively as, close revenue accounts and expense accounts and update the owner's capital account, The journal entry to close the drawing account includes, debiting the owner's capital account and crediting the drawing account. Prepare the correct adjusting entry at March 31. This activity is classified as, (Appendix) A company receives cash from a bank loan. WebCompulsive Shopping: An unhealthy obsession with shopping that materially interferes with the daily life of the afflicted. The amounts in the financial statements must agree with the ledger account balances. Use the $F$ test to determine the overall significance of the relationship. The net income for the month amounted to, Changes in owner's equity that result from investments or withdrawals of assets by the owner are included in the, The balance in an expense account is closed to a(n), The order in which financial statements should be prepared is, income statement, statement of owner's equity, balance sheet. WebStudy with Quizlet and memorize flashcards containing terms like Which of the following items would cause the balance of cash in the bank statement to not equal the balance of cash in the accounting records? Its return on assets is: Alicia Tax Services paid $670 to settle an account payable. If an adjustment for salaries earned but not recorded or paid in the amount of $85,000 were to be omitted, how would this affect the financial statements? Describe two commitment problems you personally encountered during the last year. Kim Roberts has performed $500 of CPA services for a client but has not billed the client as of the end of the accounting period. What is the amount of the company's stockholders' equity? A T Account has which of the following three major parts: A cash payment on a loan affects which of the following accounts? After the accounts are closed and the journal entries have been posted, which of the following accounts would have a balance? WebStudy with Quizlet and memorize flashcards containing terms like Bank statements should be checked immediately upon receipt and scanned carefully for errors. following statements? During the year, Laughter purchased Office Supplies for $5,600, and at December 31st the office supplies on hand total $1,500. As of December 31st, Griffin had earned $3,000 of charter revenue that has not been recorded as received. mrs_hay Teacher. Which of the following applications focuses on acquiring and retaining profitable customers via marketing, sales, and service processes? Supplies for office use were purchased during the year for $540, of which $120 remained on hand (unused) at year-end. Transaction processing systems are _______________ information systems that process data resulting from the occurrence of business transactions. ** What advantages should Chance, Lynn, and their future partners be aware of with respect to organizing as a general partnership? The company received its electric bill on December 31st for $375 but will not pay it until January 5th. Capital at the end of the month is, (Appendix) A utility bill for $315 was paid. Financial statements will be prepared on July 31. Its equity is $318 million. (Appendix) The three types of business activities are operating activities, investing activities, and capital activities. Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts. and more. Determine the net income of a company for which the following information is available for the month of July. The Current Liabilities are Accounts Payable and Salaries Payable. To close a revenue account with a credit balance, debit the account for its balance and credit the income summary account. How much is total owners' (=stockholders') equity? Accrued expenses. "Sinc \text { Never married } & 28.9 \% & 34.8 \% \\ Following a bumpy launch week that saw frequent server trouble and bloated player queues, Blizzard has announced that over 25 million Overwatch 2 players have logged on in its first 10 days. Use I for income statement, E for statement of retained earnings, and B for balance sheet. Griffin recorded a debit to Prepaid Insurance. b. Work-in-process. Round answer to the nearest tenth of a percent. Laughter recorded this amount as Unearned Revenue. Please explain why or why not/'. Matthew Martin, the owner of Innovation Consulting, started the business by investing $61,000 cash. Considerations of If a company fails to make an adjusting entry to record supplies expense, then. Explain. Each Monday, Betteron pays employees for the previous week's work. Thrillville's total assets are$81 million, and its liabilities other than the bonds payable are $11 million. The statement of owner's equity is prepared from information from the asset and liability accounts. ** This is the amount of money you owe suppliers or creditors. Compulsive Shopping: An unhealthy obsession with shopping that materially interferes with the daily life of the afflicted. WebStudy with Quizlet and memorize flashcards containing terms like Multiple Choice 1 Which of the following is NOT a step in the data processing cycle? Edwin began 2018 with a balance in retained earnings of$73 million. What is the correct adjusting entry (related to rent) on March 31? 1,500 bonds with $1,000 face value which the market has valued at$45,000 below its face So the answer is $551, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Don Herrmann, J. David Spiceland, Wayne Thomas, Which of the following would most likely result if the federal government increased spending without increasing tax revenues during a period of full employment? A(n) _______________ architecture illustrates the inter-relationships of the major cross-functional enterprise applications that many companies have, or are installing, today. May 15: Accounts payable paid for May 5 purchase less R&A. Asset = Liabilities + Stockholder's equity$600 = L + $280 So Total liabilities is $320. 126 terms. Its like nobody even Employees are paid every Saturday for the work week just completed (Monday through Friday). A mortgage on an office building is an example of a property, plant, and equipment asset. a. The purpose and use of the income summary account is to summarize the difference between revenues and expenses. Debit Accounts Receivable, $2,400; credit Legal Fees Revenue, $2,400. Can you work out why it starts at that particular time. Assets should be listed first B. a. Turnkey has stated that it will pay Laughter on January 10th. The drawing account should be used to show, The amount the owner has taken out of the business, Liability, owner's capital, and revenue accounts normally have, Totals on the debit and credit sides to determine the balance of an account are known as. - On September 1, borrowed the U.S. dollar equivalent of $300,000 evidenced by a note that is payable in the lenders local currency in one year. WebStudy with Quizlet and memorize flashcards containing terms like The standard T account includes all of the following EXCEPT A. Nance Realty Company received a check for $15,000 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Each Friday, Laughter pays employees for the current week's work. Debit Rent Expense $ 2,000 ($8,000/ 4months) Credit Prepaid rent $2,000. WebStudy with Quizlet and memorize flashcards containing terms like Promissory note, contra cost of goods sold, Credit to notes payable for $5,000 Debit to equipment for $5,000 and more. WebStudy with Quizlet and memorize flashcards containing terms like What is the effect of the following transaction on the three elements (assets, liabilities, and stockholders' equity) of the accounting equation? Recall the chapters starting feature involving Chance Claxton and Lynn Julian, and their company, **Kids Konserve**. Marketing information systems can help marketing managers with: Which of the following is considered a human resource business function? If a company is considering the purchase of a parcel of land that was acquired by the seller for $86,000 is offered for sale at $152,000, is assessed for tax purposes at $96,000, is considered by the purchaser as easily being worth $142,000, and is purchased for $139,000, the land should be recorded in the purchaser's books at: A law firm billed a client $2,400 for work performed in the current month. (Appendix) The accuracy of the statement of cash flows can be proved by comparing the cash provided by operating activities with the change in the cash balance. \text { Divorced } & 11.3 \% & 8.9 \% \\ Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts. WebStudy with Quizlet and memorize flashcards containing terms like Authorized, Consideration, Contracts of adhesion and more. These can include wages, interest, utilities, repairs, bonuses, and taxes. Pharm test. Select one: a. e) What was the actual Fuel Efficiency when the car was driven at $45 \mathrm{mph}$ ? GreenLawn Co. provides landscaping services to clients. A(n) _________ groups accounts into classifications and it reports current assets before noncurrent assets. Which of the following applications focuses on developing the most efficient and effective sourcing and procurement processes? An income statement is an itemized statement for the purpose of providing information regarding the results of operations during a specified period of time. GreenLawn's general journal entry to record this transaction will include a: Jennings Co. has total assets of $431.0 million. No other contributed capital transactions occurred (that is total stockholders' equity = ending retained earnings). The adjusting entry will, The adjusting entry for accrued expenses includes, GreenSource Company began the period with $330 in supplies. This year, December 31st falls on a Tuesday. A separate explanation of each closing entry is necessary. On December 31st, the business must account for the amount of rent it has earned. WebThe current ratio is calculated by dividing total Current Assets by total Current Liabilities. What will be the adjusting entry to accrue wages expense at the end of January? Identify whether a debit or credit results in the indicated change for each of the following accounts. ** What details should Chance, Lynn, and their future partners specify in the general partnership agreements? When recording closing entries in the general journal, which of the following is written in the Description column? Supplies., Which of the following methods is also referred as "parking transactions"? Call its getTime method to find out the initial time the clock has been set to. debit Depreciation Expense - equipment $ 2,500 Credit Accumulated depreciation - equipment $2,500. What does behavioral economics have to say about each of the (a) Find the mean. The amount of weekly payroll is $1,400 for a seven day work week (Monday to Sunday). Which of the following accounts should the post-closing trial balance include? WebStudy with Quizlet and memorize flashcards containing terms like The revenue cycle consists of a. one subsystem-order entry b. two subsystems-sales order processing and cash receipts c. two subsystems-order entry and inventory control d. three subsystems-sales order processing, credit authorization, and cash receipts, The reconciliation that occurs in SophiaMarlow-College. The water in the plumbing in a house is at a gauge pressure of $300,000 \mathrm{~Pa}$. \text { Status } & \text { Women } & \text { Men } \\ On March 1, Choco Corp. paid four months of rent in advance, total of $8,000. Computer integrated manufacturing is an overall concept that stresses using computer-based systems in manufacturing to do all the following, except: The overall goal of computer-integrated manufacturing is to _______________ the production and support processes. Record each event and the related adjusting entry in general journal format. |--|--|--|--| Which of the following is considered a collaborative work management tool? The company also paid $20 in dividends. According to the text, _______________ emphasize legal and historical record-keeping and the production of accurate financial statements. An income statement is an itemized statement that provides information regarding the status of the assets, liabilities, and owner's equity of a business enterprise as of a specified date. _______________ information systems support the production/operations function that includes all activities concerned with the planning and control of the processes producing goods and services. The asset account, Supplies, has a balance of $8,000 on January 1, 2016. State all of the conversion factors that you use. E. net income minus the Adjusting entries are recorded and posted after closing entries. If a company fails to adjust a Prepaid Rent account for rent that has expired, what effect will this have on that month's financial statements? The lists do not show all contributions to every state ballot measure, or each independent expenditure committee 1|Prepaid Rent|8,400|| (choose from following accounts: Prepaid rent, rent expense, cash, rent payable). _______________ systems cross the boundaries of traditional business functions in order to reengineer and improve vital business processes all across the enterprise. |Oct. Targeted marketing includes all of the following components except: Advertising and promotion efforts can be tailored to each visit to a site by an individual. It was determined that $1,500 of the Prepaid Insurance had expired. The capabilities and potential of _______________ are driving the demand for better enterprise collaboration tools in business. Which of the following would not cause the adjusted trial balance totals to be unequal? Debit accounts payable; credit supplies. Find the rate. A. a recession\ a. a) Fees Earned (Revenues) b) Office Supplies c) Dividends d) Wages Expense e) Accounts Receivable f) Prepaid Rent g) Wages Payable h) Building i) Common Stock, Identify whether a debit or credit results in Nance Realty should make the following adjusting entry on July 31: Quirk Company purchased office supplies costing $3,000 and debited Office Supplies for the full amount. The company's liabilities are $551. A count of supplies at the end of January indicates a balance of $7,000. Which of the following general journal entries will Specter Consulting make to record this transaction? Employees work 5 days a week and the company pays $1,000 a day in wages. $6.75 is what percent of$500.50. - On September 1, borrowed the U.S. dollar equivalent of $300,000 evidenced by a note that is payable in the lenders local currency in one year. B. operating cash flow minus cash flow to creditors. During 2016, the company earned net income of $13 and paid $4 in dividends. (c) the detection of alien electromagnetic signals. finds that in the long run all firms in a purely competitive industry will earn normal profits. 1. b. Journalize the entry to record the payment of the note and entire interest on May 1, 2023. To prove the equality of the debit and credit balances in the general ledger accounts after the closing entries have been journalized and posted, prepare the, The journal entry to close the income summary account (showing a net loss) includes, debiting the owner's capital account and crediting Income Summary, The journal entry to close expense accounts includes, debiting Income Summary and crediting the expense accounts, The journal entry to close revenue accounts includes, debiting the revenue accounts and crediting Income Summary. The effect of drawing transactions on the capital account is formalized at any time during the accounting period. Which of the following general journal entries will Alicia Tax Services make to record this transaction? This year, December 31st falls on a Thursday. Depreciation for the current year includes equipment, $2,100. WebStudy with Quizlet and memorize flashcards containing terms like Rules of Debit and Credit and Normal Balances State for each account whether it is likely to have debit entries only, credit entries only, or both debit and credit entries. True False, The stamp "For deposit only" is a restrictive Record insurance expense for the year ended December 31st. debit, credit, (-)$: Billed customers for fees earned for managing rental property, $9,500. Transaction processing systems play a vital role in supporting the _______________ of an e-business enterprise. Once the closing process is completed, which of the following are the only remaining open accounts with balances? 35 terms. Data Set A: 6, 7, 8 WebThe ACT contains multiple-choice tests in four areas: English, mathematics, reading and science. The person to whom the check is made payable. Using Maurice's current plan, answer the following questions. Distribution and manufacturing are _______________. Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas, Carl S Warren, James M Reeve, Jonathan E. Duchac, State whether f(x) has a maximum value or a minimum value, and find that value. \text { Widowed } & 8.6 \% & 2.6 \% Madison Harris, the owner, invested $7,600 cash and $34,600 of photography equipment in the company in exchange for common stock. $$ Which of the following general journal entries will Specter Consulting make to record this transaction? |**Date**|**Account Titles**|**Debit**|**Credit**| During 20X7, Pond sold inventory costing $60,000 to Spring Services for$90,000, and Spring Services resold one-third of the inventory in 20X7. The company pays interest on its $16,000, 4% note payable of $53 on the first day of each month. Use the currency exchange rates in discussed table to answer the following questions. B. a decrease in interest rates\ Revenue and expense account are permanent accounts. Ending retained earnings = beginning retained earnings + net income - dividends. Use the Master Glossary to determine the proper definitions. If a company receives $13,300 from the owner to establish a proprietorship, the effect on the accounting equation would be: Assets increase $13,300 and equity increase $13,300. a. Batch _______________ update the corporate databases of an organization to reflect changes resulting from day-to-day business transactions. The owner's equity in a business amounted to $52,000 at the beginning of the year and $100,000 at the end of the year. the data as a sample. WebStudy with Quizlet and memorize flashcards containing terms like Specter Consulting purchased $8,000 of supplies and paid cash immediately. This activity is classified as, (Appendix) Business transactions can be classified as, All of the following steps in the accounting cycle occur before preparing financial statements except. What is the correct sequence for closing the temporary accounts? At October 1, 2016, Medina Co. had an accounts payable balance of $50,000. A physical inventory at the end of the period revealed that there were $585 of supplies on hand. To close the drawing account with a debit balance, credit the account for its balance and debit the owner's capital account. What force does this cause on the top of the tank inside a water heater if the area of the top is $0.2 \mathrm{~m}^2$ ? WebStudy with Quizlet and memorize flashcards containing terms like d. equal to net sales less cost of goods sold., c. $400,000, b. ACT's writing test is optional and will not affect your composite score. Supplies were purchased for $\$ 1,250$ cash from a restaurant supply center that was going out of business. During the month, an additional $1,500 of supplies were purchased. The tenant was paying one year's rent in advance. Also in 20X7. Debit Accounts Payable, $670; Credit Cash, $670. Interest earned on the bank balance that the company has not recorded b. Checks written by the company that have not cleared the Debit Accounts Payable for $360 and credit Cash for $360. The fact that each transaction has a dual effect on the accounting elements provides the basis for what is called: An increase in an asset account may be offset by a(n), The difference between the total debits and credits to an account is called a, Increases when the owner invests money in the business, Examples of revenue accounts include all of the following EXCEPT, An investment of cash in a business by the owner, The purchase of an asset on account and making a partial payment results in all of the following EXCEPT, Shows that assets equal liabilities plus owner's equity, Payment of office rent represents a decrease in, Are unnecessary when there is only one entry, Payment of a telephone bill represents an increase is a(n), Calma pays wages in the amount of $3,147. Electronic mail, voice mail, faxing, Web publishing, bulletin board systems, and paging are considered _______________ tools. Credit Balances B. WebOn November 1, 2022, Cherry Industries, which uses a calendar year as its fiscal year, signs a $12,000, 7%, six-month note payable. (d) What are operating activities? Total salaries for all employees is $3,600 per month. Griffin purchased a three-month boat insurance policy on November 1 for $1,200. Raw materials. The Account Title and Balance Sheet columns of the work sheet provide all of the information necessary to prepare the statement of owner's equity. Collaborative work management tools include all of the following except: A(n) _______________ business system is a type of information system that supports the business functions of accounting, finance, marketing, operations management, and human resource management. On January 1st, 2016, Choco Company's balance in retained earnings was $30. Indicate the financial statement on which each of the following items appears. Determine the general journal entry that Jose Consulting will make to record this transaction. Credit card. Assume a December 31 closing date. To close an expense account with a debit balance, debit the account for its balance and credit the income summary account. Researchers drove a compact car for 200 miles at speeds ranging from 35 to 75 miles per hour. Transaction processing systems process data in two basic ways: _______________ and _______________. WebStudy with Quizlet and memorize flashcards containing terms like Business receives $3,200 on January 1st for 10-month service contract for the period January 1st through October 31st., Total salaries for all employees is $3,600 per month. The beginning balance of Office Supplies was $4,300. Indicate which of the following accounts will, Barry Company received $8,000 full payment in advance for services that are 60 percent complete at the end of the period. Work performed but not yet billed to customers for the month is $1,600. WebStudy with Quizlet and memorize flashcards containing terms like Indicate which of the following accounts will *never require an adjusting entry*. c. Finished goods. \hline \text { Married } & 51.2 \% & 53.7 \% \\ Cash for $3,920. Depreciation for the current year includes Equipment, $3,000; and Trucks, $2,200, Depreciation Expense-Equipment: Debit-$3,000. Data Set B: 4, 5, 6, 7, 8, 9, 10 Scott Corp. provides contracted home staging services to real estate agencies and their clients. Which step is taken at the end of the accounting period? The income summary account is an account used only during the closing process. The standard T account includes all of the following EXCEPT, Increases are entered on the credit side of a(n). This year, December 31st falls on Thursday. The net income for the year amounted to, The total assets amount to $26,000 and the total liabilities amount to $18,000. Computer-integrated manufacturing systems support all of the following concepts except: When a manufacturer automates production of a product by installing computer systems to monitor processes and robots to do some of the assembly tasks, it is an example of ____________________. A balance sheet that classifies (or groups) items by similarities is called a unified balance sheet. Checking Unit Vocabulary. At December 31st, Laughter had earned $3,000 for landscape services completed for Turnkey Appliances. WebStudy with Quizlet and memorize flashcards containing terms like 1. WebCyber Awareness 2022 Knowledge Check (Note: This set does not contain all answers) Learn with flashcards, games, and more for free. Carpet at a British home supply store sells for $16$ pounds (currency) per square meter. Moving from mainframe-based legacy systems to integrated, cross-functional client/server applications typically involves installing _______________ software. Journal entry worksheet: Record the entry for supplies used during the year., 2. ||$\hspace{15pt}$Cash||8,400| Many companies view sales force automation as a way to gain _______________ in sales productivity and marketing responsiveness. Assets, liabilities, and the owner's capital account are closed at the end of the accounting period. A statement of owner's equity is a statement summarizing all of the changes in owner's equity during a specified period of time. Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. Data input c. Data storage d. Data processing, Multiple Choice 2 Recording and processing information about a transaction at the time it occurs is referred to as which of the following? Open the clock-display project and create a ClockDisplay object by selecting the following constructor: \end{array} Griffin expects to use the boat for 10 years and that it will have a residual value of $3,500. Choco Company has assets of $592, liabilities of $213, and retained earnings of $120. Online transaction processing is considered a _______________ system because it captures and processes transactions immediately. (b) Find the standard deviation, treating If your school has a subscription to the FASB Codification, go to **http://aaahq.org/ascLogin.cfm** to log in and prepare responses to the following. The adjusted balance for Insurance Expense for the year would be, On July 1 the Vinson Shoe Store paid $8,000 to Ace Realty for 4 months rent beginning July 1. Business receives $3,200 on January 1st for 10-month service contract for the period January 1st through October 31st. develop new products or lower-cost production methods? As prepaid expenses expire with the passage of time, the correct adjusting entry will be a, The revenue recognition principle dictates that revenue should be recognized in the accounting records, Don Herrmann, J. David Spiceland, Wayne Thomas, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. All of the following are supported by the accounting business function except: Providing website visitors with chat rooms, Web forms and questionnaires, and e-mail correspondence opportunities enables companies to use _______________ to encourage customers to become involved in product development, delivery, and service issues. What adjusting entry is necessary at January 31, 2016? Once the adjusted trial balance is balanced, it can be used to prepare. If financial statements are prepared on July 31, the adjusting entry to be made by the Vinson Shoe Store is. value Also, indicate its normal balance., Journal Entry for Asset Purchase Prepare a journal entry for the purchase of office supplies on On January 1st of the current year, Laughter purchases an insurance policy that covers two years, $8,000. The following table gives percentages of all American women and men in various marriage categories. Which of the following general journal entries will the firm make to record this transaction? Networked enterprises view _______________ systems as a strategic way to use IT to decentralize information resources. _______________ tools help people accomplish or manage group work activities. This transaction, Are used for accounts with more than one debit or credit, The flow of financial data through the accounting information system does NOT include, Purchase invoices received from suppliers provide information about, When delivery equipment is purchased on account, the transaction to be entered by the purchase includes, Debiting delivery equipment and crediting accounts payable, A chronological record of financial transaction expressed as debit and credits to accounts is provided by the, Forms and papers that provide information about a business transaction are called, Because the first formal accounting record of a transaction is made in a journal from source document information, a journal is commonly referred to as a(n), For EVERY transaction, the accountant enters the, The transaction to record payment for delivery equipment that was purchased on account in the previous month would include, Debiting accounts payable and crediting cash, Posting the debits and credits to the accounts, Copies of the sales tickets or sales invoices issued to customers or clients provide information about, Receipt stubs, carbon copies of receipts, cash register tapes, or memos of cash register totals provide information about, The accounts in the chart of accounts are arranged in, The steps in the journalizing process include all of the following EXCEPT, Check stubs and carbon copies of checks provide information about, If the owner of a company invested cash in a business enterprise, the transaction would include, Service revenue received in cash is entered by, Debiting cash and crediting service revenue, Every entry in the journal should include all of the following EXCEPT, Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus, Don Herrmann, J. David Spiceland, Wayne Thomas. meggleigh. Depreciation Expense-Equipment: Debit-$500. Betterton had incurred (but not recorded) $200 of interest expense on a note payable. Its total liabilities are $113.5 million. **2. (No payment was made on the notes payable or salaries payable. Cash flow to stockholders is defined as: A. cash flow from assets plus cash flow to creditors. (choose from following accounts: supplies, supplies expense, cash, accounts payable). Large Balances C. Debit Balances D. Negative Balances, Accounts that affect owner's equity (d) What A(n) __________ is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item. **1. On October 1st, a business collected $3,000 rent in advance, debiting Cash and crediting Unearned Revenue. Your accounts payable are current liability accounts on your balance sheet. Centurion Co. had the following accounts and balances at December 31: Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. Training in a virtual world is effective, but obstacles include both _______________. prepare a trial balance, make adjustments, prepare financial statements, The journal entry to close the income summary account (showing a profit) includes, debiting Income Summary and crediting the owner's capital account. _______________ systems are cross-functional information systems that enhance communication and coordination among the members of business teams and workgroups. On October 1, Griffin received $9,000 prepayment for a deep-sea fishing charter to take place in December. A) Accounts payable represents a note; a vendor ensures we sign an agreement with interest paid. How much is net income for the year? _______________ software can integrate the front-office and back office systems applications of a business so they work together in a seamless, integrated way. Sales on * Paid $8,400 cash in advance on October 1 for a one-year lease on office space. The steps involved in handling all of the transactions and events completed during an accounting period, beginning with placing data in a book of original entry and ending with a post-closing trial balance, are referred to collectively as the accounting cycle. It would, therefore, have no effect on the income statement. Laughter will pay its employees on January 3rd. Now we need to find out ending balance of each of our total assets, total liabilities, and total stockholders' equity using the changes during the year.Assets at year end = $600 + $100 (increased) = $700. The beginning balance of Office Supplies was $2,300. **Required:** Edison's general journal entry to record this transaction will include a: If equity is $350,000 and liabilities are $196,000, then assets equal: If a company uses $1,560 of its cash to purchase supplies, the effect on the accounting equation would be: One asset increases $1,560 and another asset decreases $1,560, causing no effect. Trent Tables paid employee wages on and through Friday, January 26, and the next payroll will be paid in February. a. Consignment sales. Interest of $270 on a note receivable was earned at year-end, although collection of the interest is These are considered liability accounts. Since Stockholders' equity =1/2Assets, we can rewrite our accounting equation as following, Assets = Liabilities +1/2Assets 1/2Assets = Liabilities Therefore, Liabilities = Stockholders' equity! One of the contractual agreements in the bond indenture is that the debt to equity ratio cannot exceed 2.0. _______________ is defined as the use of the Internet and other networks and information technologies to support electronic commerce, enterprise communication and collaboration, and Web-enabled business processes, both within a networked enterprise and with customers and business partners. On April 1st, when the business prepaid $4,320 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash. D. dividends paid minus net new equity raised. Ted Catering received $1,300 cash in advance from a customer for catering services to be provided in three months. To close the income summary account with a credit balance, debit the account for its balance and credit the drawing account. Griffin's fishing boat was purchased on January 1st at a cost of $33,500. Expenses on the income statement could be listed in alphabetical order by dollar amount. Betterton billed customers $3,000 for welding services performed. 73 terms. C. dividends paid plus the change in retained earnings. 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