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Doug Allen has decided to go into the insect extermination business and to operate as
Doug's Extermination Service. The following transactions were completed during the
first month of operations, May, 20--.
Enter the transactions in the T accounts, then enter the total of each column. If an
account has entries on both sides, determine the balance and enter it on the side with the
larger total.
Bringing the book and bank balances into agreement is called ____________________.
Frequently used accounts are entered in the General Debit column and the General
Credit column of a special journal.
Under the modified cash basis of accounting, adjustments are made only for prepaid
items and depreciation on plant and equipment.
The ____________________ is a method of accounting that combines aspects of the
cash and accrual methods. It uses the cash basis for recording revenues and most
expenses. Exceptions are made when cash is paid for assets with useful lives greater
than one accounting period.
The principal accounting officer of a company is called a pubic accountant.
On May 1, a petty cash fund was established for $200. The following vouchers were
issued during May.
Required:
The book value of a plant asset is determined by subtracting the accumulated
depreciation from the cost of the plant asset.
