Exam 2: Transaction Analysis

Andy Company had a cash balance on May 1 of $29,000. At the end of May, the cash balance has decreased to $30,000. During the month of May, Andy received cash of $47,000 from various sources. Based on this information, cash payments for the month of May were:

A trial balance has which of the following features?

A company had credit sales of $46,000 and cash sales of $12,000 during the month of May. Also during May, the company paid wages of $16,000 and utilities of $5800. It also received payments from customers on account totaling $7000. At the beginning of May, the company had a cash balance of $25,000. What is the company's cash balance at the end of May?

If a posting error has occurred whereby a debit is treated as a credit, then the out-of-balance amount on the trial balance will be evenly divisible by:

The first step in recording a transaction in the journal is:

The ledger:

Entries are listed in the journal:

Purchasing supplies on account would:

A trial balance is a required financial statement.

What is the last step in the journalizing process?

If a company performs services on account, the revenue is not earned until the cash is collected.

If the trial balance does not balance, several steps can be taken to find the error. Which step will probably NOT help you find the error?

Define and provide an example of each of the following.

Prepare the journal entry for the following transaction: The business acquired land by paying $50,000 in cash and signing a promissory note for $250,000.

Journal entries can have more than two accounts as long as the total debits equal the total credits.

When working with T accounts, an important rule to remember is: