Exam 2: The Recording Process

On June 1, 2014 Quang Le buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction, he will

In recording an accounting transaction in a double-entry system

At October 1, 2014, Padilla Industries had an accounts payable balance of $60,000. During the month, the company made purchases on account of $50,000 and made payments on account of $80,000. At October 31, 2014, the accounts payable balance is

A classmate who is a computer science major thinks that accountants are obsolete. She states that computers can do the entire process without any human assistance. Discuss the steps in the recording process and indicate what role the computer plays in that process.

Match the items below by entering the appropriate code letter in the space provided.

If a company has overdrawn its bank balance, then

On October 3, Josh Antonio, a carpenter, received a cash payment for services previously billed to a client. Josh paid his telephone bill, and he also bought supplies on credit. For the three transactions, at least one of the entries will include a

Which account below is not a subdivision of retained earnings?

The general policy for using proper currency signs (dollar, yen, pound, etc) is the same for both GAAP and this textbook. This policy is as follows

For each transaction given, enter in the tabulation given below a "D" for debit and a "C" for credit to reflect the increases and decreases of the assets, liabilities, and equity accounts. In some cases there may be a "D" and a "C" in the same box. Transactions: 1. Shareholders invest cash in the business in exchange for ordinary shares. 2. Pays insurance in advance for six months. 3. Pays secretary's salary. 4. Purchases supplies on account. 5. Pays electricity bill. 6. Borrows money from local bank. 7. Makes payment on account. 8. Receives cash due from customers. 9. Provides services on account. 10. The company pays dividends.

In the first month of operations, the total of the debit entries to the cash account amounted to $700 and the total of the credit entries to the cash account amounted to $500. The cash account has a

Which of the following is not true of the terms debit and credit?

The journal provides a chronological record of transactions.

Which of the following statements is true?

Compound entries

At January 1, 2014, LeAnna Industries reported retained earnings of $195,000. During 2014, LeAnna had a net loss of $45,000 and paid dividends of $30,000. At December 31, 2014, the amount of retained earnings is

Omega Company pays its employees twice a month, on the 7^th and the 21^st. On June 21, Omega Company paid employee salaries of $4,000. This transaction would

Glynn Company is a newly organized business. The list of accounts to be opened in the general ledger is as follows: Instructions Organize the accounts into the order in which they should appear in the ledger of Glynn Company and assign account numbers. Use the following system to assign account numbers.

The best interpretation of the word credit is the

At December 1, 2014, Gibson Company's accounts receivable balance was €2,400. During December, Gibson had credit revenues of €10,000 and collected accounts receivable of €8,000. At December 31, 2014, the accounts receivable balance is