9/5/13 Section 1-2 Asset Accounts Cash Supplies Pre-Paid Insurance Liability Accounts Payable, Best Buy Accounts

ts Payable, Sams Club Owners Equity Capital, Kayleigh Messner Section 1-3 Owners Equity Revenue-Sales Expenses- Misc. Expense, Telephone Expense, Postage Expense Investment Withdrawal

Ch. 5 Notes 1. Recording a voided check a. Date VOID C1 2. Four reasons why a banks records and depositors records may differ a. Outstanding deposit b. Outstanding check c. Service charge d. Interest 3. Bank reconciliation: a. Your records BALANCE with the bank 4. Recording a Bank Service Charge on a check stub: a. It goes under the other section b. Then subtract from previous balance 5. Journalizing a bank service charge: a. Debit- Miscellaneous Expense b. Credit: Cash 6. Journalizing a dishonored check: a. Debit- A/R b. Credit: Cash 7. Journalizing an electronic funds transfer (EFT): a. Debit- A/P b. Credit- Cash 8. Journalizing a debit card transaction: a. Debit- Whatever account you spent $ on ex. Supplies b. Credit- Cash 9. Journalizing the establishment of Petty Cash a. Debit-Petty Cash b. Credit- Cash 10. Journalizing the replenishment of petty cash: a. Debit- Whatever account you spent $ on ex. Supplies, Misc. Expense, etc b. Credit-Cash

Ch. 8-1NOTES Adjusting Entries Supplies Expense Supplies Insurance Expense PPI

Ch.8-2 Notes Closing Entries Permanent Accounts Accounts used to accumulate information from one fiscal period to the next Includes all the accounting equation accounts. Assets=liabilities + owners equity. Permanent accounts are everything that is on the balance sheet. Temporary Accounts- accounts used to accumulate information until it is transferred to the owners capital account. Temporary accounts are all income statement accounts and drawing account. Ex: expense, purchases, revenue, etc... Closing Entries- Journal entries used to prepare temporary accounts for new fiscal period. The temporary account balances must be reduced to zero at the end of each fiscal period. 1. Closing the sales account to the income summary: Sales Income Summary 4411 4411

2. Closing the expense accounts to the income summary: Income summary Advertising Expense Insurance Expense Misc. Expense 3312 273 100 10

Rent expense Supplies expense Utilities Expense

250 2564 115

3. Closing the net income/net loss to the capital account: a. Net Income Income Summary Capital OR b. Net Loss Capital 1099 1099 4. Closing the drawing account to the capital Capital Drawing 600 600 1099 1099

INCOME SUMMARY IS NOT A REAL ACCOUNT. INCOME SUMMARY IS USED AS A DUMPING ACCOUNT.