P16-6A The following data, presented in alphabetical order, are taken from the records of
Urbina Corporation. Accounts payable $240,000 Accounts receivable 140,000
Accumulated depreciationbuilding 180,000 Accumulated depreciationequipment
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Chapter 2 Review Sheet
Debit means left side and Credit means right side.
Depending on the account, a debit will either increase or decrease the value in the account.
The ADE-LCR system is a very useful tool to help decide which to use.
All Assets, Drawin
Inventory Methods: (this example is used with periodic)
FOB Shipping Point or Destination
Gross Profit Method
Create a Cost of Goods Available for Sale List.
Obligations in the form of written promissory notes.
First National Bank agrees to lend $100,000 on 4/1/11, if Cole Williams company signs a
$100,000. 12% four-month note.
Cole's Entries for the Note Payable
Chapter 9 Review Sheet
2 Bases for the Allowance Method:
1. Percentage of Sales:
First calculate the net sales (sales sales returns and
allowances) x percentage of estimated bad debt = Bad
debt expense; you DO NOT need to worry about what
is already in th
Chapter 7: Accounting Information Systems
Subsidiary Ledger A group of accounts with common characteristics. Two common subsidiary ledgers are
Accounts Receivable (our customers) subsidiary ledgers & Accounts Payable (o ur creditors) subsidiary ledgers.
Chapter 10 Review Sheet
Compute and journalize the annual depreciation expense for the first three years of the
equipments useful life, the equipment cost $50,000 with a $3,000 salvage value. The equipment
has a 10 year useful life or 500,000
Petty Cash Fund Controls
Establishing the Fund: To establish a petty cash account, the company takes money out of its cash
account and puts it into the newly-created petty cash account. The petty cash account is simply a box or
drawer that contains money
Chapter 4 - Closing Entries
There are 4 closing entries:
1. Close all Revenue accounts to the Income Summary account
2. Close all Expense accounts to the Income Summary account
Accounting 101 Chapter 5 Review Sheet
Key Concept: If the journal entry involves our company being the buyer of merchandise, then we will
put all miscellaneous expenses under Merchandise Inventory. However, if we are the seller of
merchandise, we will hav
Chapter 3: Adjusting the Accounts
Companies make adjusting entries at the end of an accounting period. Adjusting entries ensure that
revenues are reported in the period when they are earned and that expenses are recorded in the period
they are incurred.
Chapter 1: Accounting in Action
The Basic Accounting Equation is:
Assets = Liabilities + Owners Equity
The Expanded Accounting Equation is:
Assets = Liabilities + Owners capital - Owners drawings + Revenues - Expenses
-Each transaction has a duel effect o