Homework_2 a - Student Name: Andrei Grosu BUS 208 A, Fall...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Student Name: Andrei Grosu BUS 208 A, B , C or D (circle one) Fall 2008 HOMEWORK N. 2 (Chapters 4, 5, and 8) Part I. Closing entries. (10 points) Fill in the blanks with the appropriate word(s): Revenue accounts usually have credit normal balances (the “+” side). Expense accounts usually have debit normal balances. At the end of the accounting period, we close Revenue accounts into the temporary income account and we close Expense accounts into the income summary account, also. This means that at the accounting period end, we debit Revenues and we credit Expenses. Afterwards, we close the Income Summary account into the capital account. The Owners’ Withdrawals account is not closed into Income Summary. However, it is directly closed into capital. Part II. Merchandising companies. (10 points) “3/15, n/30” means…. . Use a whole sentence. (2 points): This means that the buyer can either pay the invoice within 15 days of the invoice or take a 3 percent discount or that he/she can wait 30 days and pay the full amount of the invoice. Merchandising companies under the periodic inventory system use an account called “Merchandise Inventory.” (2 points) False Assume we are a chocolate & candy shop. We can keep track of equipment purchases in the Purchases account. (2 points) False 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/14/2009 for the course BUSINESS bus 203c taught by Professor Milankas. during the Spring '09 term at American University in Bulgaria.

Page1 / 4

Homework_2 a - Student Name: Andrei Grosu BUS 208 A, Fall...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online