Accounting Exam 1 Review PDF

Preview

Summary

Full overview of first exam topics and study guide...

Description

Accounting Exam #1 Review Q1. Match the account to the account type Account

Account Type

Cash

Asset

Accounts Receivable

Asset

Inventory

Asset

Prepaid expenses (rent, equipment, etc.)

Asset

Land

Asset

Building

Asset

Equipment

Asset

Patents

Asset (intangible)

Notes Receivable

Asset

Supplies

Asset

Salaries Payable

Liability

Taxes

Liability

Loans

Liability

Social Security Payable

Liability

Unearned Revenue

Liability

Bonds Payable

Liability

Retained Earnings

Owner’s Equity

Common + Capital Stock

Owner’s Equity

Paid in Capital

Owner’s Equity

Service Revenue

Revenue

Sales

Revenue

Interest Income

Revenue

Salary Expense

Expense

Utilities Expense

Expense

Rent Expense

Expense

Advertising Expense

Expense

Dividends

Dividends

Q2. Adjusting journal entries - What you do for accounts that change infrequently or depreciation accounts - Things like supplies when you don’t update it everyday Q3. Given numbers to make a income statement, statement of retained earnings, balance sheet Income statements: Statement of r/e: 1. Income statement: a. revenues, indent list revenue then total revenue b. expenses, indent list of expenses then total expenses c. then net income is rev-exp 2. Statement of retained earnings: a. Retained earnings, Apr. 1 2001 b. Add: net income c. Less: dividends d. Retained earnings, Apr. 30 2001 3. Balance sheet: snapshot a. assets on left (most to least liquid; current to long-term) cash, accounts receivable, prepaid rent, inventory, supplies i. Then long term assets: notes receivable and PPE, Less: accumulated depreciation b. Liabilities on right: accounts payable, salary payable etc. then total current liabilities (normally no long-term ones but if an account looks sketch then maybe) c. OE on right: Stockholder’s equity, common stock, retained earnings, dividends, total stockholder’s equity d. Then total liabilities and stockholder’s equity Q4. Closing Entries - Revenues, expenses, dividends - Credit retained earnings for revenues, debit retained earnings for expenses and dividends Revenues

Expenses

Dividends

Debit revenues Credit retained earnings

Debit retained earnings Credit expenses

Debit retained earnings Credit dividends

Q5. Shareholder’s Equity: net income or net loss Q6. Journal entries - Debit rent, credit prepaid rent - Debit depreciation expense- furniture, credit accumulated depreciation - Contra-assets Q7. Accounting cycle steps 1. Analyze transactions 2. Journalize

3. 4. 5. 6. 7. 8.

Post accounts to the general ledger Trial balance Adjusting entries Adjusted trial balance Prepare financial statements (income statement, balance sheet, statement of r/e) Closing entries

Q8. Fill in the blank account analysis...