1. Assets are what we __________. (2.5 points)

2. Liabilities are what we __________. (2.5 points)

3. Owners Equity are what are __________. (2.5 points)

4. On a T account, debits are recorded on the __________. (2.5 points)

5. On a T account, credits are recorded on the __________. (2.5 points)

6. Assets = __________ + __________. (2.5 points)

7. In the following, indicate whether the account is a Balance Sheet or Income Statement account.

a. Accounts Receivable __________ (1 point)

b. Retained Earnings __________ (1 point)

c. Inventory __________ (1 point)

d. Equipment __________ (1 point)

e. Accounts Payable __________ (1 point)

f. Expenses __________ (1 point)

g. Sales __________ (1 point)

h. Cash __________ (1 point)

i. Gross Profit __________ (1 point)

j. Earnings Per Share __________ (1 point)

k. Accumulated Depreciation __________ (1 point)

l. Common Stock __________ (1 point)

8. LIFO inventory valuation means ______________________________. (2 point)

9. FIFO inventory valuation means ______________________________. (2 point)

10. The Balance Sheet is a listing of the organizations assets, liabilities and owners equity at a __________ in time. (2 points)

11. The Income Statement reports an organizations results for a __________ of time. (2 points)

12. Record the following transactions in journal format: (15 points)

a. Purchased $500 worth of office supplies for cash. ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________

b. Bought a new computer for $2,000 paid $1,000 cash and the balance is to be paid in 90 days. ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________

c. Sold 100 figurines at a cost of $5 each for $7 each for cash. ___________________________________________________________________ ___________________________________________________________________ __________________________________________________________