Question 1

The process of transferring data from the journal to the ledger accounts is called posting.

Accepted Answer

A) True 
 B)False

Question 2

The posting reference notation used in the journal is the page number.

Accepted Answer

A) True 
 B)False

Question 3

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 Receivable

Accepted Answer

A) Credit side 
B) Debit side 
A) Credit side 
B) Debit side

Question 4

Cash was paid by Janer's Cleaning Service to creditors on account. Which of the following entries for Janer's Cleaning Service records this transaction?

Accepted Answer

A)  Cash, debit; Debbi Janer, Capital, credit 
B)  Accounts Payable, debit; Cash, credit 
C)  Accounts Receivable, debit; Cash, credit 
D)  Accounts Payable, debit; Accounts Receivable, credit 
A)  Cash, debit; Debbi Janer, Capital, credit 
B)  Accounts Payable, debit; Cash, credit 
C)  Accounts Receivable, debit; Cash, credit 
D)  Accounts Payable, debit; Accounts Receivable, credit

Question 5

Liability accounts are increased by debits.

Accepted Answer

A) True 
 B)False

Question 6

Consuming goods and services in the process of generating revenues results in expenses.

Accepted Answer

A) True 
 B)False

Question 7

Journalize the following selected transactions for January. Explanations may be omitted.Jan.1Received cash from the investment made by the owner, $14,000.2Received cash for providing accounting services, $9,500.3Billed customers on account for providing services, $4,200.4Paid advertising expense, $700.5Received cash from customers on account, $2,500.6Owner withdrew $1,010.7Received telephone bill, $900.8Paid telephone bill, $900.​

Accepted Answer

The answer of Journalize the following selected transactions for January....

Question 8

On November 30, Damien Lawson is informed by his accountant that $550 of a transaction recording the purchase of office supplies was really office equipment. Prepare the journal entry to correct this situation.

Accepted Answer

Nov. 30Off

Question 9

On January 12, JumpStart purchased $870 in office supplies.​
(a) Journalize this transaction as if JumpStart paid cash.​
(b) Journalize this transaction as if JumpStart placed it on account.​
(c) On January 18, JumpStart pays the amount due. Journalize this event.

Accepted Answer

The answer of On January 12, JumpStart purchased $870 in...

Question 10

A credit to the cash account will increase the account.

Accepted Answer

A) True 
 B)False

Question 11

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 number
(s) 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.Owner, Capital
17.Insurance Expense
18.Interest Expense
19.Office Supplies Expense
20.Unearned Service Revenue
21.Owner, Drawing​ $$\begin{array} { | l | l | l | } 
\hline \text { Transactions } & \text { Account(s) Debited } & \text { Account(s) Credited } \
\hline \text { a. Utility bill is received; payment will } & & \
\text { be made in } 10 \text { days. } & & \
\hline \text { b. Paid the utility bill previously } & & \
\text { recorded in transaction (a). } & & \
\hline \text { c. Bought a three-year insurance } & & \
\text { policy and paid in full. } & & \
\hline \text { d. Received } \$ 7,000 \text { from a contract to } & & \
\text { perform accounting services over the } & & \
\text { next two years. } & & \
\hline
\end{array}$$

Accepted Answer

The answer of Listed below are accounts to use for...

Question 12

Transactions are listed in the journal chronologically.

Accepted Answer

A) True 
 B)False

Question 13

Office supplies were sold by Janer's Cleaning Service at cost to another repair shop, with cash received. Which of the following entries for Janer's Cleaning Service records this transaction?

Accepted Answer

A)  Office Supplies, debit; Cash, credit 
B)  Office Supplies, debit; Accounts Payable, credit 
C)  Cash, debit; Office Supplies, credit 
D)  Accounts Payable, debit; Office Supplies, credit 
A)  Office Supplies, debit; Cash, credit 
B)  Office Supplies, debit; Accounts Payable, credit 
C)  Cash, debit; Office Supplies, credit 
D)  Accounts Payable, debit; Office Supplies, credit

Question 14

The unearned revenue account is an example of a liability.

Accepted Answer

A) True 
 B)False

Question 15

The normal balance of a capital account is a debit.

Accepted Answer

A) True 
 B)False

Question 16

A list of the accounts used by a business is called the

Accepted Answer

A)  journal 
B)  chart of accounts 
C)  T chart 
D)  debit listing 
A)  journal 
B)  chart of accounts 
C)  T chart 
D)  debit listing

Question 17

Which of the following applications of the rules of debit and credit is true?

Accepted Answer

A)  decrease Prepaid Insurance with a credit and the normal balance is a credit 
B)  increase Accounts Payable with a credit and the normal balance is a debit 
C)  increase Equipment with a debit and the normal balance is a debit 
D)  decrease Cash with a debit and the normal balance is a credit 
A)  decrease Prepaid Insurance with a credit and the normal balance is a credit 
B)  increase Accounts Payable with a credit and the normal balance is a debit 
C)  increase Equipment with a debit and the normal balance is a debit 
D)  decrease Cash with a debit and the normal balance is a credit

Question 18

Postings made to standard account forms show a new balance after each entry.

Accepted Answer

A) True 
 B)False

Question 19

Withdrawals decrease owner's equity and are listed on the income statement as a deduction from revenue.

Accepted Answer

A) True 
 B)False

Question 20

Debiting the cash account will increase the account.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

The process of transferring data from the journal to the ledger accounts is called posting.

The posting reference notation used in the journal is the page number.

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 Receivable

Cash was paid by Janer's Cleaning Service to creditors on account. Which of the following entries for Janer's Cleaning Service records this transaction?

Liability accounts are increased by debits.

Consuming goods and services in the process of generating revenues results in expenses.

On November 30, Damien Lawson is informed by his accountant that $550 of a transaction recording the purchase of office supplies was really office equipment. Prepare the journal entry to correct this situation.

On January 12, JumpStart purchased $870 in office supplies.​ (a) Journalize this transaction as if JumpStart paid cash.​ (b) Journalize this transaction as if JumpStart placed it on account.​ (c) On January 18, JumpStart pays the amount due. Journalize this event.

A credit to the cash account will increase the account.

Transactions are listed in the journal chronologically.

Office supplies were sold by Janer's Cleaning Service at cost to another repair shop, with cash received. Which of the following entries for Janer's Cleaning Service records this transaction?

The unearned revenue account is an example of a liability.

The normal balance of a capital account is a debit.

A list of the accounts used by a business is called the

Which of the following applications of the rules of debit and credit is true?

Postings made to standard account forms show a new balance after each entry.

Withdrawals decrease owner's equity and are listed on the income statement as a deduction from revenue.

Debiting the cash account will increase the account.

Introduction to Accounting and Business

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Cost-Volume-Profit Analysis

Evaluating Variances From Standard Costs

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Filters

On January 12, JumpStart purchased $870 in office supplies. (a) Journalize this transaction as if JumpStart paid cash. (b) Journalize this transaction as if JumpStart placed it on account. (c) On January 18, JumpStart pays the amount due. Journalize this event.