- The income statement and balance sheet are prepared from the trial balance columns on the worksheet
- Adjusting entries must be posted to a general ledger account
- Most errors occur in doing arithmetic
- The two accounts affected by the adjustment for supplies supplies and supplies expense
- Net income on a work sheet is calculated by subtracting the income statement debit column total from the income statement credit column total
- If there are errors in a work she's trial balance Colum, it might be because of general ledger account balance was recorded in the wrong trial balance column
- The accounting concept Consistent Reporting is being applied when a delivery business reports revenue for the number of deliveries made one year and the amount of revenue received for the deliveries made the next year.
- The source document used my supplies by on account or paid for is a memorandum
- Calculator tape is the source document for daily
- The best way to prevent yours is to use a calculator
- The balance and supplies expense after adjusting entries are recorded represents the amount of supplies used during the first fiscal period
- Examples of source documents include checks, sales invoice, receipts, and memorandums
- The source document used when supplies or bought on account is a check
- And double entry accounting, each transaction affects at least three accounts
- The journal columns used to record receiving cash from sales are cash debit and sales credit
- The four questions asked when analyzing an adjustment RY, where, when and how
- To correct an error in a journal, simply recent incorrect item and write the correct item in the same place
- Only accounts with a balance are listed on a trial balance
- Information in a journal includes the debit and credit parts of each transaction recorded in one place
- The journal columns used to record paying cash to the owner for a withdrawal of equity or cash debit in general credit