Accounting 1 Final Review

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If an error is recorded in a journal entry,

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cancel the error by drawing a neat line through the error, correct the entry by writing the correct item above the canceled error, do not erase the incorrect item.

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The second step in the posting procedure is writing the

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journal page number in the Post. Ref. column of the account.

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Income Summary is a(n)

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temporary account

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An example of a permanent account is

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cash

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Assets taken out of a business for the personal use of the owner are called

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withdrawals

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When the owner puts cash into the company it's an

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investment

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The entry to establish a $100.00 petty cash fund is

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debit Petty Cash, $100.00; credit Cash, $100.00.

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If an amount is recorded on the side of a account (T account) opposite the normal balance side, the account balance is

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decreased

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On a work sheet, the balance of the owner’s capital account is extended to the

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Balance Sheet Credit column.

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Information needed to prepare an income statement’s Expense section is obtained from a work sheet’s Account Title column and

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Income Statement Debit column.