Accounting Concepts to Midterm

define the following concepts:
o account,
o debit,
o credit,
o account balance, and
o ledger
Understand the nature of accounts that would typically be placed within a
Balance Sheet, such as:
o cash,
o accounts receivable,
o furniture,
o equipment,
o supplies,
o bank loan payable,
o account payable,
o mortgage payable, and
o capital.
Explain the functions of, and work with, the following types of owner's equity
o revenue
o expense
o drawings
o capital
Understand and utilize the following new GAAPs associated with these new
o the revenue recognition principle,
o the matching principle.
Understand the following concepts related to the above principles:
Income Statement
net income
net loss
fiscal period, and the
Chart of Accounts
Prepare an Income Statement
Prepare a Balance Sheet which includes an expanded Owner's Equity section
understand and explain the following concepts:
o HST Payable,
o HST Recoverable,
o "Contra" account,
o journalizing,
o posting,
o post reference
journalize the "opening entry" within a General Journal.
journalize transactions within a General Journal.
correctly journalize sales and purchase transactions involving HST;
distinguish between an adjusting entry and a transaction entry;
understand the function of adjusting entries;
know and understand the concept of prepaid expenses;
understand how to adjust for the following prepaid expenses:
o prepaid insurance
o prepaid rent
o supplies on hand
know and understand the concept of depreciation;
be able to calculate depreciation on a fixed asset using either the:
o straight line method, or the
o declining balance method
be able to properly use the following accounts related to depreciation:
o any fixed asset account (ie. computer, building, automobile)
o accumulated depreciation account (contra-asset account)
o depreciation expense
Eight-Column Worksheet
understand and explain the process involved in closing the revenue, expense,
and drawings accounts in order to update the owner's capital account.
demonstrate these closing entries within either a General Journal or a General
differentiate between:
o real accounts and nominal accounts,
o the Trial Balance and the Post-Closing Trial Balance, as well as
o the Income Summary (or Revenue and Expense Summary) account and
other Owner's Equity accounts.
prepare a post-closing trial balance.