detailed exam preparation guide Essay

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chapter 6 –

The main topic is the bank reconciliation. Pages 354-55, 358-59 - and don’t forget the student resources section on the left panel in the home page of your online PearsonMyLab for an interactive review.

A second topic to be prepared for is the petty cash fund. Know how to journalize the creation of a PCF, and how to journalize the replenishment and recording of receipts expenses – making sure you know where to put [debit? or credit?] any cash overage or shortfall discovered at time of replenishment.

A question on components and procedures of cash control is also possible. Know what these are. See the three pages in the textbook on what these are.

Chapter 5 –

The main topic is the 7 retail company transactions – four relating to the purchase function, three relating to the sales function.

In preparation for the exam, I recommend memorizing the account names and layout.

In actually doing a chapter 5 transaction journalizing question, keep control of the dollar values for each journal entry by

-carefully posting each transaction to a T-account and

-working out the “balance” in each account after each posting.

-calculating journal values based on the balances and other info given in the question

A second topic to be prepared for is the preparation [from a trial balance] of a multistep retail company income statement.

In preparation for the exam, I recommend memorizing the basic 10-line multistep retail company income statement

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