Chapter 7 & 8 Review

Adjustments Adjustment Information: –Supplies on hand $200 –Value of Prepaid Insurance $750 In which column would this information be found on the worksheet? –Trial balance, Adjustments, Income Statement or Balance Sheet? Debit or Credit?

So how do you calculate the Adjustments for Supplies? Trial Balance sheet amount – x = Balance Sheet Amount $895 – x = $200 $895 = x + $200 $695 = x

How do you calculate Net Income or Net Loss?? Rev – Exp = NI/NL Rev > Exp = Net Income Exp > Rev = Net Loss Where is the total revenue on the work sheet? Where is the total expenses on a work sheet?

Rulings What does a single line rule indicate? Double line?

What about Rulings? Net Loss

How do you calculate Current Capital (for balance sheet)? Capital account balance + Net Income – Drawing Or Capital account balance – Net Loss - Drawing

$ $160 - $400 = $2940

How do you calculate component % on an Income Statement? Expenses/Sales Net Income (or Loss)/Sales Round to the nearest tenth! 54.6