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2 1 Indicate the normal balance ie what you do to increase of the following accounts Cash Sales Accounts Payable Retained Earnings Security Dep

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2 1 Indicate the normal balance ie what you do to increase of the following accounts Cash Sales Accounts Payable Retained Earnings Security Dep Powered By Docstoc
					2-1      Indicate the normal balance (ie what you do to increase) of the following accounts
         Cash
         Sales
         Accounts Payable
         Retained Earnings
         Security Deposit
         Note Payable
         Wages Payable
         Accounts Receivable
         Wage Expense
         Interest Revenue
         Tax Expense
         Tax Payable
         Inventory
         Advertising Expense
         Cost of Goods Sold

2-2     Debit means
      A Asset
      B Asset and expense
      C Left side
      D Right side
      E Can be either the left or right side depending on the account

2-3      Indicate whether the following statements are true or false
         Each journal entry must balance
         If a journal entry has two debits, it must have two credits
         Debits are usually put first in a journal entry
         Journal entries must include both balance sheet and income statement accounts
         The closing entry can't be made until the tax expense is determined

2-4 Indicate which side of the T account is the debit and which is the credit side?




2-5 Indicate by "+" or "-" which side of the T account increases or decreases the particular
    category of account.
                                Asset                  Revenue                  Expense
2-6 Which category of accounts belongs on the Balance sheet and which on the Income statemen
       Category         Financial Statement
       Asset
       Expense
       Liabilities
       Owner's Equity
       Revenue

2-7   Make the Journal entry to record the sale of merchandise, that cost $6,000, for $10,000 for cash




2-8   Make the journal entry to record the payment of wages




2-9   The purpose of the closing entry is:
owing accounts




ses the particular

     Expense
on the Income statement?




000, for $10,000 for cash.
2-1        Indicate the normal balance (ie what you do to increase) of the following accounts
      Dr   Cash
      Cr   Sales
      Cr   Accounts Payable
      Cr   Retained Earnings
      Dr   Security Deposit
      Cr   Note Payable
      Cr   Wages Payable
      Dr   Accounts Receivable
      Dr   Wage Expense
      Cr   Interest Revenue
      Dr   Tax Expense
      Cr   Tax Payable
      Dr   Inventory
      Dr   Advertising Expense
      Dr   Cost of Goods Sold

2-2        Debit means
      A    Asset
      B    Asset and expense
      C    Left side                              and that is all it means!!
      D    Right side
      E    Can be either the left or right side depending on the account

2-3        Indicate whether the following statements are true or false
      T    Each journal entry must balance
      F    If a journal entry has two debits, it must have two credits
      T    Debits are usually put first in a journal entry
      F    Journal entries must include both balance sheet and income statement accounts
      T    The closing entry can't be made until the tax expense is determined

2-4 Indicate which side of the T account is the debit and which is the credit side?


                              Debit    Credit




2-5 Indicate by "+" or "-" which side of the T account increases or decreases the particular
    category of account.
                                  Asset                  Revenue                 Expense
                               Dr       Cr               Dr      Cr
                                  +      -                -        +




2-6 Which category of accounts belongs on the Balance sheet and which on the Income state
        Category          Financial Statement
        Asset             Balance Sheet
        Expense           Income Statement
        Liabilities       Balance Sheet
        Owner's Equity    Balance Sheet
        Revenue           Income Statement

2-7      Make the Journal entry to record the sale of merchandise, that cost $6,000, for $10,000 fo

         Cash                         10,000
           Sales                                10,000
         To record sale

         Cost of Goods Sold             6,000
            Inventory                            6,000
         to record cost of sale

2-8      Make the journal entry to record the payment of wages of $8,000.

         Wage Expense               8,000
           Cash                                  8,000
         To record payment of wages


2-9      The purpose of the closing entry is:

           To transfer all balances in the revenue and expense accounts
           (these are also known as the "nominal" or "temporary" accounts)
           to retaines earnings. These nominal accounts are now zero
           and ready for the next recording period.
f the following accounts




tatement accounts


e credit side?




ecreases the particular

             Expense
             Dr      Cr
             +         -




which on the Income statement?




cost $6,000, for $10,000 for cash.

				
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Description: What Belongs on the Income Statement document sample