Exam 3: Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

Journalize the following transactions that occurred during September. Omit explanations. Sep. 5 S. Richman invested $4,000 cash and $100 of equipment into his new business. 10 Paid three months' rent in advance, $1,500. 23 Purchased equipment on account, $2,000. 24 Billed client for services rendered, $1,000.

What are interim financial statements?

The general journal

The first step of the accounting cycle is

Posting is the transferring of information from the ledger to the chart of accounts.

Blake Company began business in July. Prepare the following transactions for July. Omit explanations. July 2 Blake invested $5,000 cash and $2,000 equipment into her new business 12 Billed customer for services performed, $800 16 Purchased equipment on account, $900 20 Received one-half amount due from June 12 25 Blake withdrew cash for personal use, $1,000.

How are credit descriptions distinguished from debit descriptions in the general journal?

Conner Sales' total assets and total liabilities increased $500. The transaction could have been

Business transactions are first recorded in the

If Capital has been credited, it is likely that

Karen Brown, a student in your class, is not sure the effect of the following unrelated situations would have on the accuracy of the financial statements. Identify the account(s) that are affected and if the trial balance would balance. (a) Equipment was purchased for $1,500 cash. The debit was recorded properly, but the credit was omitted. (b) A debit to cash for $69 was posted as $96; the credit was posted correctly. (c) A purchase of supplies on account for $300 was posted as a debit to equipment and a credit to cash.

When the trial balance includes a debit column total of $18,352 and a credit column total of $18,552, it is probable that

Riley's Book Review billed customers $350 for editing work completed this month. The journal entry to record this transaction is

If Accounts Payable has been credited, it is most likely that

The PR column of the journal should be completed as soon as the journal entry is written.

Which of the following entries records the acquisition of office supplies for cash?

The credit part of the transaction is recorded first in the journal entry.

Leona James, a student in your class, is not sure the effect of the following unrelated situations would have on the accuracy of the financial statements. Identify the account(s) that are affected and if the trial balance would balance. (a) Equipment was purchased for $2,500 cash. The debit was recorded properly, but the credit was omitted. (b) A debit to cash for $37 was posted as $73; the credit was posted correctly. (c) A purchase of supplies on account for $200 was posted as a debit to equipment and a credit to cash.

The order of the flow of accounting data is to (1) prepare a trial balance, (2) record in a journal, (3) post in a ledger.

During the month of October, Ford advertised on the Internet. Ford received the bill for $600 in October, but waited until November to pay the advertising expense. The journal entry to record the payment in November is