New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Principles of Accounting I Chapters 1-5 Notes

by: Nicole Rossi

Principles of Accounting I Chapters 1-5 Notes

Marketplace > Rowan University > Accounting > > Principles of Accounting I Chapters 1 5 Notes
Nicole Rossi
GPA 3.9

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

These are notes from Chapters 1-5 of the Principles of Accounting I class. This is what I used to study for the midterm exam.
Principles of Accounting I
Diane Hughes
Accounting, Math, business
75 ?




Popular in Principles of Accounting I

Popular in Accounting

This 3 page Bundle was uploaded by Nicole Rossi on Friday January 22, 2016. The Bundle belongs to at Rowan University taught by Diane Hughes in Fall 2015. Since its upload, it has received 24 views. For similar materials see Principles of Accounting I in Accounting at Rowan University.


Reviews for Principles of Accounting I Chapters 1-5 Notes


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 01/22/16
Accounting Midterm Study Sheet Chapter 1 Basic Accounting Equation:  ASSETS = LIABILITIES + OWNER’S EQUITY Classifying Accounts:  Assets: are the resources a business owns (cash, equipment, supplies, accounts receivable)  Liabilities: Claims of those to whom the company owes money (accounts payable, notes payable, sales and real estate taxes payable)  Owner’s Equity: Claims of owners (owner’s capital – owner’s drawings + revenue – expenses) CHAPTER 2 Rules of Debit and Credit: Assets: Liabilities: Owner’s Equity: Debits increase = Debits decrease + Debits decrease Credits decrease Credits increase Credits increase Owner’s Capital: Revenue: Debits decrease Debits decrease Credits increase Credits increase Owner’s Drawings: Expenses: Debits increase Debits increase Credits decrease Credits decrease General Journal Entries: Date Debit amount Credit amount Calculate Net Income:  REVENUE-EXPENSES= NET INCOME  if expenses are greater, then there is a net loss. CHAPTER 3 Adjusting Entries : “services performed, but not yet recorded” = accounts receivable, service rev. “supplies left” = supplies expense, supplies “expired insurance..” insurance expense, prepaid insurance “depreciation for the month” = depreciation expense, accumulated depreciation “interest accrued..” = interest expense, interest payable “accrued salaries” =salaries and wages expense, salaries and wage payable “services related to unearned service revenue..” = unearned service rev, ser. rev. “expensed the cost”/book value (original amount-adjusted number) Interest expense mortgage interest: mortgage payable*rate%/12 CHAPTER 4 Closing Entries: Closing Entries:  to close Net Income/loss (if net income is positive): Income Summary is debited, and Owner’s Capital is credited.  to close Net Income/loss (if net income is negative): Owner’s Capital is debited, and Income Summary is credited.  to close Owner’s Drawings: Owner’s Capital is debited, and Owner’s Drawings is credited.  make sure you know what accounts are supposed to be closed.  check the side to see what is debited/credited and then when closing it make it the opposite.  if revenues are credited, then in closing entry, revenues get debited, and income summary gets credited.  if expenses are debited, then in closing entry, expenses get credited, and income summary is debited. Correcting Entries : Correcting Entries:  always think about what the correct entry is supposed to be and go from there.  if something is credited and it shouldn’t be, debit it for the same amount.  if something is debited and it shouldn’t be, credit it for the same amount.  if something is debited for the wrong amount and it’s too low, debit it for the amount that is needed to get the two debits to equal the right amount.  if something is credited for the wrong amount and it’s too low, credit it for the amount that is needed to get the two credits to equal the right amount.  if something is debited and it’s too high of an amount, credit it for the amount extra.  if something is credited and it’s too high of an amount, debit it for the amount extra.  if there is 3 accounts affected, make sure to check what is supposed to be debited and what’s supposed to be credited. Check given in the original problem.  if something is debited/credited right, don’t re-enter it. CHAPTER 5  Sales Revenue - Cost of Goods Sold = Gross Profit – Expenses =Net Income  Net income is gross profit less operating expenses  In a periodic inventory system, a return of defective merchandise to a supplier is recorded by crediting purchase returns and allowances  When goods are purchased for resale on account by a company using a periodic inventory system, they are debited to Purchases.  In a periodic inventory system the entry to record the credit sale of merchandise affects which of the following accounts? Sales Revenue  When goods are purchased for resale on account by a company using a periodic inventory system, they are debited to purchases  net purchases= purchases-purchase returns and allowances-purchase discounts  cost of goods purchased=net purchases+freight in  gross profit=net sales-cost of goods sold  cost of goods available for sale=beginning inventory+cost of goods purchased  cost of goods sold=cost of goods available for sale-ending inventory


Buy Material

Are you sure you want to buy this material for

75 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Kyle Maynard Purdue

"When you're taking detailed notes and trying to help everyone else out in the class, it really helps you learn and understand the I made $280 on my first study guide!"

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.