FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: Analyzing Transactions

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

True/False

Review LaterAdd Note

Review Later

The T account got its name because it resembles the letter "T."

A) True
B) False

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

A debit balance in which of the following accounts would indicate a likely error?

A) Salaries Expense
B) Notes Payable
C) Common Stock
D) Supplies

E) B) and C)
F) A) and D)

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

A dividends account represents the amount of earnings paid to the stockholders.

The gross increases in stockholders' equity attributable to business activities are called

Listed below are accounts to use for transactions a) through d), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing the account numbers) in the appropriate box. 1. Cash 2. Accounts Receivable 3. Office Supplies 4. Land 5. Interest Receivable 6. Building 7. Accumulated Depreciation-Building 8. Depreciation Expense-Building 9. Accounts Payable 10. Interest Payable 11. Insurance Payable 12. Utilities Expense 13. Notes Payable 14. Prepaid Insurance 15. Service Revenue 16. Common Stock 17. Insurance Expense 18. Interest Expense 19. Office Supplies Expense 20. Unearned Service Revenue 21. Dividends $\begin{array} { | l | l | l | } \hline \text { Transactions } & \text { Accounts) Debited } & \text { Accounts) Credited } \\\hline \begin{array} { l } \text { a. Utility bill is received; payment } \\\text { will be made in } 10 \text { days. }\end{array} & & \\\hline \begin{array} { l } \text { o. Paid the utility bill previously } \\\text { recorded in transaction a). }\end{array} & & \\\hline \begin{array} { l } \text { c. Bought a three-year insurance } \\\text { policy and paid in full. }\end{array} & & \\\hline \begin{array} { l } \text { d. Received } \$ 7,000 \text { from a contract } \\\text { to perform accounting services } \\\text { over the next two years. }\end{array} & & \\\hline\end{array}$

The increase side of an account is also the side of the normal balance.

Increases and decreases in various types of accounts are listed below. In each case, indicate by "Dr." or "Cr." a) whether the change in the account would be recorded as a debit or a credit and b) whether the normal balance of the account is a debit or a credit.

The normal balance of an expense account is a credit.

A trial balance determines the accuracy of the numbers.

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account. -Accounts Payable

The chart of accounts should be the same for each business.

Of the following, which is an internal report that will determine if debit balances equal credit balances in the ledger?

Which group of accounts is comprised of only assets?

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account. -Common Stock

The post reference notation used in the ledger is the account number.

Liabilities are debts owed by the business entity.

The chart of accounts for the Corning Company includes the following: $\begin{array} { | l | l | } \hline \text { Account Name } &{ \text { Account Number } } \\\hline \text { Cash } & 11 \\\hline \text { Accounts Receivable } & 13 \\\hline \text { Prepaid Insurance } & 15 \\\hline \text { Accounts Payable } & 21 \\\hline \text { Unearned Revenue } & 24 \\\hline \text { Common Stock } & 31 \\\hline \text { Dividends } & 32 \\\hline \text { Fees Earned } & 41 \\\hline \text { Salaries Expense } & 54 \\\hline \text { Rent Expense } & 56 \\\hline\end{array}$ Page 3 of the journal contains the following entry: $\begin{array} { | c | l | l | } \hline \text { Prepaid Insurance } & 1,530 & \\\hline \text { Cash } & & 1,530 \\\hline\end{array}$ -The chart of accounts for the Miguel Company includes the following: $\begin{array} { | l | l | } \hline \text { Account Name } & { \text { Account Number } } \\\hline \text { Cash } & 11 \\\hline \text { Accounts Receivable } & 13 \\\hline \text { Prepaid Insurance } & 15 \\\hline \text { Accounts Payable } & 21 \\\hline \text { Unearned Revenue } & 24 \\\hline \text { Common Stock } & 31 \\\hline \text { Dividends } & 32 \\\hline \text { Fees Earned } & 41 \\\hline \text { Salaries Expense } & 54 \\\hline \text { Rent Expense } & 56 \\\hline\end{array}$ Page 5 of the journal contains the following transaction: $\begin{array} { | c | l | l | } \hline \text { Salaries Expense } & 525 & \\\hline \text { Cash } & & 525 \\\hline\end{array}$ What is the posting reference that will be found in the salaries expense account?

This journal entry will

When a transposition error is made on the trial balance, the difference between the debit and credit totals on the trial balance will be

Journalize the following selected transactions for January. Explanations may be omitted. Jan. 1Received cash from the sale of common stock, $14,000. 2Received cash for providing accounting services, $9,500. 3Billed customers on account for providing services, $4,200. 4Paid advertising expense, $700. 5 Received cash from customers on account, $2,500. 6 Paid dividends, $1,010. 7 Received telephone bill, $900. 8 Paid telephone bill, $900.