Principles of Financial Accounting - Final Exam Review
Autor: HMontoya • April 28, 2019 • Case Study • 1,138 Words (5 Pages) • 499 Views
Principles of Financial Accounting - Final Exam Review
- Know your normal debit/credit balances and which financial statement they are on. Some examples: (look at chart on back cover of book, gives you most accounts we have covered) 10 points. HELPFUL HINT! Do not just look at these. Cover them up and see if you can get them on your own!
Account Name | Normal Balance D or C | BS, IS or SS/E |
Dividends | D | SS/E |
Preferred Stock | C | BS & SS/E |
Treasury Stock | D | BS & SS/E |
Sales Revenue | C | IS |
Accounts Payable | C | BS |
Retained Earnings | C | BS & SS/E |
Unearned Revenue | C | BS |
Prepaid Insurance | D | BS (prepaid expenses are actually an asset) |
Inventory | D | BS |
Prepaid Insurance | D | BS |
Accumulated Depreciation | C | BS |
Accounts Receivable | D | BS |
- Journal Entries – You will need to record the journal entries IN GOOD FORM for 5 transactions plus 5 adjusting journal entries for a company. This section will be worth 20 points
Transactions:
12/1/17: Took out a loan from a bank for cash and signed a 9 month, 7% note for $20,000 with interest and principal due at the end of the loan.
12/1/17: Paid liability insurance policy of $18,000 covering 12/1/17 to 11/30/18.
12/15/17: Billed customers for services provided in the amount of $20,000.
12/20/17: Received cash in the amount of $38,000 from customers for amounts previously billed
12/28/17: Received the utility bill for December in the amount of $350 with a due date of 1/20/18.
Adjusting Entries:
12/31/17: Accrued interest expense on the loan obtained on 12/1/17.
12/31/17: Recorded $667 in depreciation for 2017
12/31/17: Accrued $10,000 in salaries earned by employees in the month of December
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