Ch F 06 - Chapter 6 The Accounting System SOLUTIONS TO APPLY WHAT YOU HAVE LEARNED 6-13 1 a Prepaid Taxes 2 b Notes Payable 3 e Advertising Expense

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Unformatted text preview: Chapter 6 The Accounting System SOLUTIONS TO APPLY WHAT YOU HAVE LEARNED 6-13. 1. a Prepaid Taxes 2. b Notes Payable 3. e __ Advertising Expense 4. c Retained Earnings 5. b Bonds Payable 6. e Depreciation Expense 7. d Rent Revenue 8. a Land 9. a Automotive Equipment 10. c Additional Paid-in Capital 11. d Sales 12. e Truck Expense 13. b Accounts Payable 14. e Gasoline Expense 15. c Common Stock 6-14. 1. a Accounts Receivable 2. d Sales 3. b Notes Payable 4. a Prepaid Rent 5. a Supplies Inventory 6. d Delivery Service Revenue 7. e Insurance Expense 8. e Income Tax Expense 9. b Wages Payable 10. c Additional Paid-in Capital Chapter 6 – The Accounting System F-207 6-15. 1. Analyze transactions 2. Journalize transactions 3. Post Transactions to the general ledger 4. Prepare the trial balance/worksheet 5. Adjust the accounts and reconcile the bank account 6. Prepare adjusted trial balance 7. Prepare the financial statements 8. Prepare the closing entries 9. Prepare the post-closing trial balance 6-16. a. Journal – A book of original entry into which accounting transactions are first recorded. b. Ledger – A book of final entry into which the transactions from a journal are posted. The ledger is a collection of all the accounts used by an entity. c. Posting – The process of recording information from a journal to a ledger. d. Trial Balance – A listing of all account balances in the general ledger. This listing is intended to prove whether all debits and credits are equal. e. Adjusting Entries – The entries recorded at the end of a period which attempt to match all the expenses with the proper time period or with the revenues they help to produce to comply with the matching principle. f. Closing Entries – The entries recorded at the end of the fiscal year to zero out the temporary accounts (revenue and expense) accounts and to transfer net income or net loss to the equity account. 6-17. 1. c A sub-classification of the broad accounting elements such as assets, liabilities, and equity 2. a The series of steps repeated each accounting period to enable a business entity to record, classify, and summarize financial information 3. b A book of original entry 4. f A device used to sort accounting data into similar groupings 5. h The process of recording into the general ledger from a journal 6. e The process of recording transactions into the book of original entry 7. d A listing to prove the equality of debits and credits 8. g The complete list of the account titles used by an entity Chapter 6 – The Accounting System F-208 6-18. 1. P Cash 2. P Accounts Payable 3. P Additional Paid-in Capital 4. T Sales Revenue 5. P Prepaid Insurance 6. P Merchandise Inventory 7. T Dividends 8. T Rent Expense 9. T Income Tax Expense 10. P Income Taxes Payable 11. P Common Stock 6-19....
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This note was uploaded on 04/23/2008 for the course CM 131 taught by Professor Peploski during the Fall '08 term at Clarkson University .

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Ch F 06 - Chapter 6 The Accounting System SOLUTIONS TO APPLY WHAT YOU HAVE LEARNED 6-13 1 a Prepaid Taxes 2 b Notes Payable 3 e Advertising Expense

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