Term
| Cash exchanged for Common Stock |
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Definition
Debit Cash
Credit Common Stock |
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Term
| Purchase Equipment for Cash |
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Definition
Debit Equipment
Credit Cash |
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Term
| Purchase of Equipment for Cash and Accounts Payable |
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Definition
Debit Equipment
Credit Cash, Accounts Payable |
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Term
| Receipt of cash for future service |
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Definition
Debit Cash
Credit Unearned Revenue |
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Term
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Definition
Debit Rent Expense
Credit Cash |
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Term
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Definition
Debit Prepaid Insurance
Credit Cash |
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Term
| Purchase of supplies on credit |
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Definition
Debit Advertising Supplies
Credit Accounts Payable |
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Term
| Declaration and Payment of dividend by corporation |
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Definition
Debit Dividends
Credit Cash |
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Term
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Definition
Debit Cash
Credit Service Revenue |
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Term
| Adjustment for depreciation |
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Definition
Debit Depreciation Expense
Credit Accumulated Depreciation--Office Equipment |
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Term
| Adjusting entry for used advertising supplies |
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Definition
Debit Advertising supplies expense (original cost-remaining supplies)
Credit Advertising Supplies |
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Term
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Definition
Debit Insurance Expense
Credit Prepaid Insurance |
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Term
| Recognition of earned revenue that was prepaid |
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Definition
Debit Unearned Revenue
Credit Service Revenue |
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Term
| Revenue Earned but not yet received |
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Definition
Debit Accounts Receivable
Credit Service Revenue |
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Term
| Cash received for services previously performed and billed |
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Definition
Debit Cash
Credit Accounts Receivable |
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Term
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Definition
Debit Interest Expense (face value of note*annual interest rate*time in terms of one year)
Credit Interest Payable |
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Term
| Accrued Salaries (adjustment for end of period when not a full week) |
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Definition
Debit Salaries Expense ($/day * number of days)
Credit Salaries Payable |
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Term
| Accounts before adjustment for Prepaid expenses |
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Definition
Assets Over
Expenses Under |
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Term
| Accounts before Adjustment for Unearned Revenues |
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Definition
Liabilities Over
Revenues Under |
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Term
| Accounts before Adjustment for accrued revenues |
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Definition
Assets Over
Revenues Under |
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Term
| Accounts before adjustment for Accrued Expenses |
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Definition
Expenses under
Liabilities under |
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Term
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Definition
Debit Service Revenue
Credit Income Summary
Debit Income Summary
Credit Expenses
Debit Income Summary
Credit Retained Earnings
Debit Retained Earnings
Credit Dividends |
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Term
| Purchase of merchandise on Credit (Perpetual Inventory System) |
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Definition
Debit Merchandise Inventory
Credit Accounts Payable |
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Term
| Payment for freight costs FOB shipping point (buyer) (perpetual inventory syst.) |
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Definition
(buyer pays freight cost)
Debit Merchandise Inventory
Credit Cash |
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Term
| Payment for freight costs FOB destination (seller) |
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Definition
(seller pays freight expense)
Debit Freight out
Credit Cash |
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Term
| Entry to record the return of merchandise (buyer) |
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Definition
Debit Accounts Payable
Credit Merchandise Inventory |
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Term
| Record Payment for merchandise within discount period (perpetual system) |
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Definition
Debit Accounts Payable
Credit Cash, Merchandise Inventory |
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Term
| Record sale of merchandise on credit (Perpetual System) |
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Definition
Debit Accounts Receivable
Credit Sales
Debit Cost of Goods Sold
Credit Merchandise Inventory |
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Term
| Credit granted for returned goods (Perpetual system) |
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Definition
Debit Sales Returns and allowances
Credit Accounts Receivable
Debit Merchandise Inventory
Credit Cost of Goods Sold |
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Term
| receipt of Payment within discount period (perpetual System) |
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Definition
Debit Cash, Sales discounts
Credit Accounts Receivable |
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Term
| Closing Entries for Merchandising Operations |
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Definition
Debit Service Revenue
Credit Income Summary
Debit Income Summary
Credit Expenses, Returns and Allowances, Sales Discounts, COGS, Freight out
Debit Income Summary
Credit Retained Earnings
Debit Retained Earnings
Credit Dividends |
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Term
| Purchase Returns and Allowances (Perpetual System) |
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Definition
Debit Merchandise Inventory
Credit Accounts Payable |
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Term
| Purchase of Merchandise on Credit (periodic system) |
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Definition
Debit Purchases
Credit Accounts Payable |
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Term
| Freight Costs on Purchase (periodic system) |
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Definition
Debit Freight in
Credit Cash |
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Term
| Purchase returns and allowances (periodic system) |
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Definition
Debit Accounts Payable
Credit Purchase returns and allowances |
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Term
| Payment on account with discount (periodic system) |
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Definition
Debit Accounts Payable
Credit Cash, Purchase discounts |
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Term
| Sale of Merchandise on Credit (periodic system) |
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Definition
Debit Accounts Receivable
Credit sales |
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Term
| Return of Merchandise Sold |
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Definition
Debit Sales Returns and Allowances
Credit Accounts Receivable |
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Term
| Cash Received on account with discount (periodic system) |
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Definition
Debit Cash, Sales Discounts
Credit accounts receivable |
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Term
| Establishing a petty cash fund |
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Definition
Debit Petty Cash
Credit Cash |
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Term
| Replenishing Petty Cash Fund |
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Definition
Debit all expenses (postage, freight out etc.)
Debit Cash over and Short
Credit Cash |
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Term
| Collection of Note Receivable by bank |
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Definition
Debit Cash, Miscellaneous expense (for bank service charge)
Credit Notes Receivable, Interest revenue |
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Term
| Book error check correcting entry |
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Definition
Debit Cash
Credit Accounts Payable |
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Term
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Definition
Debit Accounts Receivable
Credit Cash |
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Term
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Definition
Debit Miscellaneous expense
Credit Cash |
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Term
| Write off for Uncollectible account |
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Definition
Debit Allowance for Doubtful Accounts
Credit Accounts Receivable |
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Term
| Recovery of an uncollectible account |
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Definition
Debit Accounts Receivable
Credit Allowance |
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Term
| Recording estimated uncollectibles |
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Definition
Debit Bad Debts Expense
Credit Allowance for Doubtful Accounts |
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Term
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Definition
Debit Cash, service charge expense
Credit Accounts receivable |
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Term
| Visa and Mastercard purchase |
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Definition
Debit Cash, Service Charge Expense
Credit Sales |
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Term
| American Express and Diners club |
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Definition
Debit Accounts Receivable -- American Express, Service Charge Expense
Credit Sales
Later....
Debit Cash
Credit Accounts Receivable -- American Express |
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Term
| Collection of a note receivable |
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Definition
Debit Cash
Credit Notes receivable, interest revenue |
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Term
| Dishonor of Notes Receivable |
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Definition
Debit Accounts Receivable
Credit Notes Receivable, Interest Revenue |
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Term
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Definition
Debit Cash
Credit Sales, Sales Tax Payable |
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Term
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Definition
Debit Salaries and Wages Expense
Credit FICA Taxes Payable, Federal Income Taxes Payable, State Income Taxes, Salaries and Wages Payable
Debit Salaries and Wages Payable
Credit Cash |
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Term
| Employer's Expense for Payroll |
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Definition
Debit Payroll Tax Expense
Credit FICA Taxes Payable, Federal/state Unemployment Taxes Payable |
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Term
| Issuing Bonds at Face Value |
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Definition
Debit Cash
Credit Bonds Payable |
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Term
| Payment of interest on a bond |
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Definition
Debit Bond interest expense
Credit Cash |
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Term
| Issuing Bonds at Discount |
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Definition
Debit Cash, Discount on Bonds Payable
Credit Bonds Payable |
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Term
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Definition
Debit Cash
Credit Bonds Payable, Premium on Bonds Payable |
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Term
| Redeeming Bonds at Maturity |
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Definition
Debit Bonds Payable
Credit Cash |
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Term
| Redeeming Bonds Before Maturity |
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Definition
Debit Bonds Payable, Loss/gain on bonds payable, premium/discount on bons
Credit Cash |
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