Chp 7: Expenses Flashcards
Info relating to insurance expense for the year ended 30 June 2021.
On 1 July 2020, the insurance expense payable account showed a balance of $560.
State the journal entry on 1 July 2020.
Info relating to insurance expense was provided for the year ended 30 June 2021.
During the year, total insurance paid by cheque amounted to $45 800.
State the journal entry for $45 800. (HINT: M $)
Info relating to insurance expense was provided for the year ended 30 June 2021.
On 30 June 2021, business still owed insurance amounting to $7 600.
State the journal entry on 30 June 2021
Info relating to insurance expense was provided for the year ended 30 June 2021.
1 On 1 July 2020, the insurance expense Payable account showed a balance of $560.
2 During the year, total insurance paid by cheque amounted to $45 800.
3 On 30 June 2021, Business still owed insurance amounting to $7 600.
Calculate the total insurance expense for the year.
45 800 + 7600 - 560 = $52 840
Info relating to insurance expense was provided for the year ended 30 June 2021.
1 On 1 July 2020, the insurance expense Payable account showed a balance of $560.
2 During the year, total insurance paid by cheque amounted to $45 800.
3 On 30 June 2021, Business still owed insurance amounting to $7 600
State the journal entry to close off the insurance expense.
Define Matching Theory
Expenses incurred must be
matched against income earned in the
same period to determine
the profit for that period.
What is cost of sales?
COST incurred in BUYING THE INVENTORY WHICH WAS SOLD
What is the journal entry when goods costing $100 are sold for $XX
Describe Jan 1
The entry is to REVERSE the rent expense payable $3 as at 31 Dec 2020 and to be paid this financial year.
Describe June 30 transaction
Business PAID $11 BY CHEQUE FOR rent expense.
Describe the $4 transaction
$4 rent expense INCURRED this financial year but would o_nly be PAID IN NEXT FINANCIAL YEAR._
Describe the $12 transaction
$12 rent expense INCURRED in this financial year and is transferred to income summary account
