MATCH TERMS

PART V MATCHING (30 Points) Match the following terms with the definitions or statements listed below. Indicate your answers in the spaces provided. a. Adjusting journal entries f. Income summary b. Cancelled check g. Outstanding checks C. Closing entries h. Permanent accounts d. Credit memorandum i. Petty cash e. Debit memorandum j. Temporary accounts Answer 1. Accounts whose balances are carried over to the next period. 2. An increase to the depositor's balance shown on the bank statement. 3. A fund that allows payment of small amounts without writing checks. 4. Entries that are prepared to (a) reduce or clear all temporary accounts to a zero balance, and (b) update capital to a new balance. 5. A temporary account in the ledger that summarizes revenue and expenses and transfers its balance (net income or net loss) to capital. 6. A decrease to the depositor's balance shown on the bank statement. 7. A check that is not negotiable. 8. Checks written by the company that were not processed by the bank prior to preparation of the bank statement 9. Accounts whose balances at the end of an accounting period are not carried over to the next accounting period. 10. Journal entries that are needed to update specific ledger accounts to reflect correct balances at the end of an accounting period