1 Match each term associated with accrual basis and cash basis accounting with its most appropriate description Accrual basis expense Accrual basis revenue Revenue recognition principle Cause and effect Cash basis revenue Cash basis expense Match each of the options above to the items below A company pays cash for supplies in May and uses those supplies in June The expense is recorded in May A company pays cash for supplies in May and uses those supplies in June The expense is recorded in May Open choices for matching A company pays cash for supplies in May and uses those supplies in June The expense is recorded in June A company pays cash for supplies in May and uses those supplies in June The expense is recorded in June Informal concept in accounting which states that expenses are recorded in the same period as the revenues they help to generate A company receives cash from customers in May and performs services in June The revenue is recorded in June Formal concept which states that sales of products or services are recorded in the period they are provided to customers A company receives cash from customers in May and performs services in June The revenue is recorded in May 2 Match each type of adjusting entry with its definition Deferred revenue Accrued expenses Prepaid expenses Accrued revenue Match each of the options above to the items below Receive cash in the current period that will be recorded as a revenue in a future period Record an expense in the current period that will be paid in cash in a future period Record a revenue in the current period that will be collected in cash in a future period Pay cash (or have an obligation to pay cash) in the current period that will be recorded as an expense in a future period 3 Match each term related to closing entries with its description Closing entries Permanent accounts Temporary accounts Post closing trial balance Adjusted trial balance Match each of the options above to the items below Revenues, expenses, and dividends List of permanent accounts and their balances Transfer of temporary balances to retained earnings List of permanent and temporary accounts and their balances Assets, liabilities, and stockholders 4 For each transaction below, calculate the amount of revenue to be recognized in the current period using accrual basis accounting (a) Performed $24,000 of services during the month and received full cash payment from customers at the time of service Revenue to be recognized (b) Performed $9,000 of services during the month and billed customers Customers are expected to pay next month Revenue to be recognized (c) Received $12,000 cash from customers for services to be provided next month Revenue to be recognized 5 JOURNAL ENTRY WORKSHEET A company receives $2,500 cash from customers for services to be provided next month Record the cash receipt using (a) accrual basis accounting and (b) cash basis accounting Event A Record The cash receipt using accrual basis accounting Event B Record the cash receipt using cash basis accounting

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1. Match each term associated with accrual-basis and cash-basis accounting with its most appropriate description. Accrual-basis expense Accrual-basis revenue Revenue recognition principle Cause-and-effect Cash basis

1. Match each term associated with accrual-basis and cash-basis accounting with its most appropriate description.

Accrual-basis expense
Accrual-basis revenue
Revenue recognition principle
Cause-and-effect
Cash basis revenue
Cash-basis expense

Match each of the options above to the items below.

A company pays cash for supplies in May and uses those supplies in June. The expense is recorded in May.
A company pays cash for supplies in May and uses those supplies in June. The expense is recorded in May. Open choices for matching
A company pays cash for supplies in May and uses those supplies in June. The expense is recorded in June
A company pays cash for supplies in May and uses those supplies in June. The expense is recorded in June.
Informal concept in accounting which states that expenses are recorded in the same period as the revenues they help to generate.
A company receives cash from customers in May and performs services in June. The revenue is recorded in June.
Formal concept which states that sales of products or services are recorded in the period they are provided to customers.
A company receives cash from customers in May and performs services in June. The revenue is recorded in May.

2. Match each type of adjusting entry with its definition.

Deferred revenue
Accrued expenses
Prepaid expenses
Accrued revenue

Match each of the options above to the items below.

Receive cash in the current period that will be recorded as a revenue in a future period.
Record an expense in the current period that will be paid in cash in a future period.
Record a revenue in the current period that will be collected in cash in a future period.
Pay cash (or have an obligation to pay cash) in the current period that will be recorded as an expense in a future period.

3. Match each term related to closing entries with its description.

Closing entries
Permanent accounts
Temporary accounts
Post-closing trial balance
Adjusted trial balance

Match each of the options above to the items below.

Revenues, expenses, and dividends.
List of permanent accounts and their balances.
Transfer of temporary balances to retained earnings.
List of permanent and temporary accounts and their balances.
Assets, liabilities, and stockholders

4. For each transaction below, calculate the amount of revenue to be recognized in the current period using accrual-basis accounting:

(a) Performed $24,000 of services during the month and received full cash payment from customers at the time of service

Revenue to be recognized ________

(b) Performed $9,000 of services during the month and billed customers. Customers are expected to pay next month.

Revenue to be recognized _________

Revenue to be recognized ___________

5. JOURNAL ENTRY WORKSHEET

A company receives $2,500 cash from customers for services to be provided next month. Record the cash receipt using (a) accrual-basis accounting and (b) cash-basis accounting.

Event A. Record The cash receipt using accrual basis accounting

Event B: Record the cash receipt using cash basis accounting