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

Dennis, owner of Dennis' Golf Center, withdrew $700 in cash from the business. Record the transaction by

Selected accounts from the ledger of Thomas Company appear below. For each account, indicate the following:

a. In the first column at right, indicate the type of each account using the following abbreviations:
Asset - A	Revenue - R	None of the above - N
Liability - L	Expense - E

b. In the second column, indicate the normal balance of the account by inserting a Dr. or Cr.
Account	Type of Account	Normal Balance
1. Office Supplies	________	________
2. Accounts Receivable	________	________
3. Fees Earned	________	________
4. Thomas, Withdrawals	________	________
5. Accounts Payable	________	________
6. Salaries Expense	________	________
7. Thomas, Capital	________	________
8. Accounts Receivable	________	________
9. Equipment	________	________
10. Telephone Expense	________	________

The left side of any account is the

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

What device is used to record the increases and decreases caused by business transactions to individual assets, liabilities, and owner's equity?

Debits must always equal credits.

What is X-cel Company's net income or net loss if it had Revenue of $1,800, Salary Expense of $500, Utility Expense of $250, and Withdrawals of $1,000 during October?

Accounts Payable increases on the credit side of the account.

The trial balance is a financial statement.

Determine the beginning owner's equity of a business having an ending owner's equity of $3,500, additional investments of $500 withdrawals of $400, and net loss of $750.

The entry to record Tom's payment of a home telephone bill is

The owner invested personal equipment in the business. To record this transaction,

An account had a $500 credit starting balance. There were debit postings of $400 and credit postings of $150 during the month. The ending balance is

Capital and Expenses are reported on the Statement of Owner's Equity.

A compound entry is when more than one transaction occurs.

Identify whether a debit or credit would be correct for each of the following account changes. Use a Dr. (debit) or Cr. (credit). ___Dr___ 0. Increase Cash ________ 1. Increase Equipment ________ 2. Decrease Accounts Receivable ________ 3. Decrease in Accounts Payable ________ 4. Increase in Salaries Expense ________ 5. Increase in Service Fees ________ 6. Decrease in Cash ________ 7. Increase J. Russell, Capital ________ 8. Increase J. Russell, Withdrawals ________ 9. Increase Rent Expense ________ 10. Decrease Equipment

What would be the effect on accounts if the owner withdrew cash?

The following is a list of accounts and their balances for Myra's Company for the month ended May 31, 2020. Prepare a trial balance in good form. Cash \1 ,380 Myra, Withdrawals \9 80 Accounts Payable 500 Accounts Receivable 1,030 Office Equipment 2,260 Service Fees 1,835 Myra, Capital 3,965 Rent Expense 650

The beginning balance in the Computers account was $2,500. The company purchased an additional $500 worth of computers. The balance in the account is

Which of the following accounts would be increased by a debit?