Chapter 3Chapter 4Matching Principle and Revenue RecognitionChapter 5Accounting 200Review - Exam 1Chapter 1& 2- Forms of Business OrganizationsProprietorship, Partnership, and Corporation- Financial Statements & the Components and their interrelationshipsIncome StatementStatement of Retained EarningsClassified Balance SheetNotes to Financial Statements & Auditor’s Report- FASB ~GAAP, IASB~ IFRS- Objectives of Financial Reporting (useful and its friends—relevant/reliable)Chapter 3- Asset = Liabilities + Stockholder’s Equity (Balance Sheet equation)- Debits / Credits (know rules and effects on type of account)- Normal Balances of accounts - Analyze Transactions- Preparing journal entries- Using T-accounts- Trial Balance- Distinguish difference from trial balance and financial statementsChapter 4- Matching Principle and Revenue Recognition- Adjusting entries: Prepaid expenses, Unearned Revenues, Depreciation, Accrued expenses, accrued revenuesUnderstand how a journal entry affects the accounting equation or financial statements- Adjusted Trial Balance- Prepare financial statements from an adjusted trial balance- Closing processPermanent accounts versus Temporary accountsResult of closing process (what accounts still have balances?)Chapter 5 Using perpetual system of tracking inventory: Journal entries to record steps in the purchasing process (includes payment with discount Journal entries to record sale of merchandise and receipt of payment with discount I/S Calculations =Cost of Goods Sold and Gross ProfitMILLER, INC.ADJUSTED TRIAL BALANCE12-31-08DEBIT CREDITCash 55,000Accounts Receivable 28,000Supplies on Hand 5,000Prepaid Insurance 2,000Equipment 85,000Accumulated Depreciation 40,000Accounts Payables 10,000Wages Payable 5,000Unearned Revenues 12,000Long Term Notes Payable 20,000Common Stock 66,000Retained Earnings (1-1-08) 0Dividends 4,000Sales 188,000Sales Returns and Allowances 12,000Cost of Goods Sold 60,000Rent Expense 24,000Insurance Expense 8,000Depreciation Expense 7,000Wages Expense 25,000Supplies Expense 2,000Interest Expense 6,000Income Tax Expense 18,000Total 341,000 341,000Answer the following questions using the above trial balance:1. How much is gross profit2. How much is net income3. How much is ending retained earnings4. How much is current assets5. How much is total assets6. How much is current liabilities7. How much is total
View Full Document
Unlocking...