Exam 2: Debits and Credits: Analyzing and Recording Business Transactions

The beginning balance in Cash was $400. Additional cash of $800 was received. Cheques were written for $700. The Cash balance is

A debit may signify a(n)

Accounts Receivable had a normal starting balance of $1000. There were debit postings of $800 and credit postings of $400 during the month. The ending balance is

What is the proper entry to show the owner making an investment in the company?

Which type of account would NOT be reported on the income statement?

Salaries Expense appears on the balance sheet.

Cash increases on the debit side of the account.

Below is a chart of accounts. Following is a series of transactions. Indicate for each transaction the accounts that should be debited and credited by inserting the proper account number in the space provided. 1100 Cash 3200 M. Martin, Withdrawals 1120 Accounts Receivable 4100 Legal Fees 1210 Computer Equipment 5110 Salaries Expense 2100 Accounts Payable 5120 Rent Expense 3100 M. Martin, Capital 5130 Advertising Expense Debit         Credit         Transaction ________ ________ 1. Purchased computer equipment on account. ________ ________ 2. Paid salaries for the week. ________ ________ 3. Invested additional cash in the business. ________ ________ 4. Received cash for services performed. ________ ________ 5. Billed a client on account for services performed. ________ ________ 6. Paid accounts payable. ________ ________ 7. Collected accounts receivable. ________ ________ 8. Withdrew cash for personal use. ________ ________ 9. Paid advertising expense. ________ ________ 10. Paid rent expense for the month.

Determine the beginning owner's equity of a business having beginning assets of $12,000, ending liabilities of $5,000. During the year the liabilities decreased by $3,000.

With respect to the balancing of an account, which one of these statements is FALSE?

The following transactions occurred during January for Cindy's Designer Service: a. Cindy invested $5,000 in the design service from her personal savings account. b. Bought office equipment for cash, $1,000. c. Performed designer service for a customer on account, $800. d. Telephone expense due but unpaid, $80. e. Collected $100 from customer in transaction c. f. Cindy withdrew $70 for personal use. Required: 1. Record the above transactions in the following T accounts. (Place the letter of the transaction next to the entry.) 2. Foot the T accounts where appropriate. Cash 111 Accts. Rec. 112 Off. Equip. 121 Accts. Pay. 211 Cindy, Cap. 311\ Cindy, With. 312\ Design Fees 411\ Telephone Exp. 512\

After deciding which accounts are affected, the next step in analyzing a transaction is to determine to which categories the accounts belong.

Withdrawals increases on the debit side of the account.

A list of all the accounts from the ledger with their ending balances is called a

A term used for obtaining the balance of an account is

The following is a list of accounts and their balances for Benson Company for the month ended June 30, 2020. Prepare a trial balance in good form. Cash \ 370 Accounts Receivable 1,600 Accounts Payable 770 Advertising Expense 600 Office Equipment 900 Service Fees 2,730 Benson, Capital 1,500 Salaries Expense 630 Benson, Withdrawals 500 Utilities Expense 400

Which of the following groups of accounts have a normal credit balance?

Accounts Payable had a normal starting balance of $600. There were debit postings of $350 and credit postings of $200 during the month. The ending balance is

The ledger is

A credit to a liability account was posted to an expense account. This error would cause