Review Activities

Classifying Accounts

Instructions: Please note which category each of the following belongs in on a Chart of Accounts. Write the appropriate classification category number beside each item.

Classification Categories:

Asset

Liability

Equity

Revenue

Expense

Wages
Income Tax Payable
GST Collected
Bank Charges
Computer Equipment
Utilities
Accts Payable
Accts Receivable
Interest Revenue
Petty Cash

Recording Transactions

Instructions: Record each of the following transactions as a journal entry.

1. You withdraw $100.00 from your chequing account to set-up a petty cash account.

Account	Debit	Credit

1. You make a sale for $2000 + GST and this customer always pays late.

Account	Debit	Credit

1. You receive your telephone bill for $200 + GST and you post it to be paid at the end of the month.

Account	Debit	Credit

1. The customer from question #2 pays you in full.

Account	Debit	Credit

1. You pay your telephone bill from question #3.

Account	Debit	Credit

Recording Payroll Transactions

Instructions: Record each of the following transactions as a journal entry.

1. Record the following paycheque: Wages $3000 Income Tax $500 CPP $200 EI $100

Account	Debit	Credit

1. Record the remittance to Receiver General

Account	Debit	Credit

Understanding Payroll

Instructions: Answer the following questions in the space provided.

1. List four of the accounts necessary to set-up a computerized payroll system and what they are necessary for.

1.

2.

3.

4.

1. Any amount deducted from an employee's paycheque is classified as what type of account?

1. Any amount paid out in addition to an employee's paycheque (such as medical benefits) is classified as what type of account?

1. What does CRA stand for?

1. Use the CRA Payroll Calculator to determine each specific tax for the following information: Janet - Salary $4000 - Vacation $240 - Monthly Pay Frequency - 1^st Pay Jan 31/2022. Alberta Payroll.

Income Tax

CPP

EI

Terminology

Instructions: Define the following terms in the space provided.

Retained Earnings
GST
Accounts Receivable
Current Assets
Current Liabilities
Accounts Payable

Recording Inventory Transactions

Instructions: Record each of the following transactions as a journal entry.

1. You purchase 1000 hats for $.50 each plus GST. Record this purchase to inventory.

Account	Debit	Credit

1. You sell 100 hats for $2.00 each plus GST. Record this sale.

Account	Debit	Credit

1. What is the value of the inventory you have left in stock?

Understanding Numbers

Instructions: Answer the following questions.

1. List three of the reports that you will print off each month for the accountant.
2. The current ratio can be indicator of how well the company is doing. If you have $24,000 in Current Assets and $11,000 in Current Liabilities, what is your current ratio?

1. You are excited to start working in QuickBooks next week: True False