Exam 2: Analyzing Transactions

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account. -Common Stock

The chart of accounts for the Corning Company includes the following: Account Name Account Number Cash 11 Accounts Receivable 13 Prepaid Insurance 15 Accounts Payable 21 Unearned Revenue 24 Common Stock 31 Dividends 32 Fees Earned 41 Salaries Expense 54 Rent Expense 56 Page 3 of the journal contains the following entry: Prepaid Insurance 1,530 Cash 1,530 -The chart of accounts for the Miguel Company includes the following: Account Name Account Number Cash 11 Accounts Receivable 13 Prepaid Insurance 15 Accounts Payable 21 Unearned Revenue 24 Common Stock 31 Dividends 32 Fees Earned 41 Salaries Expense 54 Rent Expense 56 Page 5 of the journal contains the following transaction: Salaries Expense 525 Cash 525 What is the posting reference that will be found in the salaries expense account?

The chart of accounts should be the same for each business.

When a transposition error is made on the trial balance, the difference between the debit and credit totals on the trial balance will be

The gross increases in stockholders' equity attributable to business activities are called

A trial balance determines the accuracy of the numbers.

Increases and decreases in various types of accounts are listed below. In each case, indicate by "Dr." or "Cr." a) whether the change in the account would be recorded as a debit or a credit and b) whether the normal balance of the account is a debit or a credit.

Listed below are accounts to use for transactions a) through d), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing the account numbers) in the appropriate box. 1. Cash 2. Accounts Receivable 3. Office Supplies 4. Land 5. Interest Receivable 6. Building 7. Accumulated Depreciation-Building 8. Depreciation Expense-Building 9. Accounts Payable 10. Interest Payable 11. Insurance Payable 12. Utilities Expense 13. Notes Payable 14. Prepaid Insurance 15. Service Revenue 16. Common Stock 17. Insurance Expense 18. Interest Expense 19. Office Supplies Expense 20. Unearned Service Revenue 21. Dividends Transactions Accounts) Debited Accounts) Credited a. Utility bill is received; payment will be made in 10 days. o. Paid the utility bill previously recorded in transaction a). c. Bought a three-year insurance policy and paid in full. d. Received \ 7,000 from a contract to perform accounting services over the next two years.

The post reference notation used in the ledger is the account number.

Liabilities are debts owed by the business entity.

A dividends account represents the amount of earnings paid to the stockholders.

The T account got its name because it resembles the letter "T."

This journal entry will

Of the following, which is an internal report that will determine if debit balances equal credit balances in the ledger?

The normal balance of an expense account is a credit.

Which group of accounts is comprised of only assets?

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account. -Accounts Payable

The increase side of an account is also the side of the normal balance.

A debit balance in which of the following accounts would indicate a likely error?

Journalize the following selected transactions for January. Explanations may be omitted. Jan. 1Received cash from the sale of common stock, $14,000. 2Received cash for providing accounting services, $9,500. 3Billed customers on account for providing services, $4,200. 4Paid advertising expense, $700. 5 Received cash from customers on account, $2,500. 6 Paid dividends, $1,010. 7 Received telephone bill, $900. 8 Paid telephone bill, $900.