Question 1

On September 1, Erika Company purchased land for $47,500 cash. Provide the journal entry for this transaction.

Accepted Answer

Sept. 1Land47,500Cas

Question 2

When an owner invests assets in the business, the capital account increases due to revenue being earned.

Accepted Answer

A) True 
 B)False

Question 3

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Wrong amount posted to an account

Accepted Answer

A) Trial balance preparation errors 
B) Account balance errors 
C) Posting errors
Challenging 
A) Trial balance preparation errors 
B) Account balance errors 
C) Posting errors
Challenging

Question 4

Revenues are equal to the difference between cash receipts and cash payments.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following entries records the payment of a bill for your insurance premium?

Accepted Answer

A)  debit Prepaid Insurance; credit Cash 
B)  debit Insurance Payable; credit Accounts Receivable 
C)  debit Accounts Payable; credit Cash 
D)  debit Cash; credit Prepaid Insurance 
A)  debit Prepaid Insurance; credit Cash 
B)  debit Insurance Payable; credit Accounts Receivable 
C)  debit Accounts Payable; credit Cash 
D)  debit Cash; credit Prepaid Insurance

Question 6

Which of the following accounts are debited to record increases?

Accepted Answer

A)  assets and liabilities 
B)  drawing and liabilities 
C)  expenses and liabilities 
D)  assets and expenses 
A)  assets and liabilities 
B)  drawing and liabilities 
C)  expenses and liabilities 
D)  assets and expenses

Question 7

The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.?? $$\begin{array} { l r l r } 
\text { Accounts Payable } & \$ 1,500 & \text { Fees Earned } & \$ 3,600 \
\text { Accounts Receivable } & 1,800 & \text { Insurance Expense } & 1,300 \
\text { Prepaid Insurance } & 2,000 & \text { Land } & 3,000 \
\text { Cash } & 3,200 & \text { Wages Expense } & 1,400 \
\text { Drawing } & 1,200 & \text { Capital } & 8,800
\end{array}$$ Prepare a trial balance. The total of the debits is 
a. $13,900
b. $11,200
c. $12,700
d. $9,700

Accepted Answer

The answer of The accounts in the ledger of Monroe...

Question 8

Which of the following entries records the receipt of cash from clients on account?

Accepted Answer

A)  Accounts Payable, debit; Fees Earned, credit 
B)  Accounts Receivable, debit; Fees Earned, credit 
C)  Accounts Receivable, debit; Cash, credit 
D)  Cash, debit; Accounts Receivable, credit 
A)  Accounts Payable, debit; Fees Earned, credit 
B)  Accounts Receivable, debit; Fees Earned, credit 
C)  Accounts Receivable, debit; Cash, credit 
D)  Cash, debit; Accounts Receivable, credit

Question 9

A debit may signify a (n)

Accepted Answer

A)  decrease in asset accounts 
B)  decrease in liability accounts 
C)  increase in the capital account 
D)  decrease in the drawing account 
A)  decrease in asset accounts 
B)  decrease in liability accounts 
C)  increase in the capital account 
D)  decrease in the drawing account

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Debit or credit posting omitted

Accepted Answer

A) Trial balance preparation errors 
B) Account balance errors 
C) Posting errors
Challenging 
A) Trial balance preparation errors 
B) Account balance errors 
C) Posting errors
Challenging

Question 12

On November 1, Nickle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land. Provide the journal entry for this transaction.

Accepted Answer

Nov. 1Notes Payable2

Question 13

The order of the flow of accounting data is 
(1) record in the ledger, 
(2) record in the journal, and 
(3) prepare the financial statements.

Accepted Answer

A) True 
 B)False

Question 14

A notation in the Post. Ref. column of the general journal indicates that the amount has been posted to the ledger.

Accepted Answer

A) True 
 B)False

Question 15

The following errors took place in journalizing and posting transactions:
a.
A withdrawal of $5,000 by Stan Norton, owner of the business, was recorded as a debit to Office Expense and a credit to Cash.
b.
An accounts receivable payment for $7,800 was recorded as a debit to Cash and a credit to Fees Earned.
​
Journalize the entries to correct the errors. Omit the explanations.

Accepted Answer

The answer of The following errors took place in journalizing...

Question 16

The chart of accounts for Corning Company includes the following:
 $$\begin{array} { | l | c | } 
\hline{ \text { Account Name } } & \text { Account Number } \
\hline \text { Cash } & 11 \
\hline \text { Accounts Receivable } & 13 \
\hline \text { Prepaid Insurance } & 15 \
\hline \text { Accounts Payable } & 21 \
\hline \text { Unearned Revenue } & 24 \
\hline \text { Corning Capital } & 31 \
\hline \text { Corning Drawing } & 32 \
\hline \text { Fees Earned } & 41 \
\hline \text { Salaries Expense } & 54 \
\hline \text { Rent Expense } & 56 \
\hline
\end{array}$$ ?
Page 3 of the journal contains the following entry:
Prepaid Insurance........1,530
Cash.............................1,530
-What is the posting reference that will be found in the prepaid insurance account?

Accepted Answer

A)  11 
B)  15 
C)  3 
D)  13 
A)  11 
B)  15 
C)  3 
D)  13

Question 17

Which of the following is an internal report that will determine if debit balances equal credit balances in the ledger?

Accepted Answer

A)  chart of accounts 
B)  income statement 
C)  trial balance 
D)  account reconciliation 
A)  chart of accounts 
B)  income statement 
C)  trial balance 
D)  account reconciliation

Question 18

Richardson Company has a condensed income statement as shown.​   Using horizontal analysis, calculate the amount and percent change for sales. Round to one decimal place.

Accepted Answer

A)  $(17,000), (11.3%) 
B)  $(15,500), (10.3%) 
C)  $(18,000), (10.9%) 
D)  $(15,500), (9.4%) 
A)  $(17,000), (11.3%) 
B)  $(15,500), (10.3%) 
C)  $(18,000), (10.9%) 
D)  $(15,500), (9.4%)

Question 19

An account is said to have a debit balance if

Accepted Answer

A)  the amount of the debits exceeds the amount of the credits 
B)  there are more entries on the debit side than on the credit side 
C)  there are more entries on the credit side than on the debit side 
D)  the first entry of the accounting period was posted on the debit side 
A)  the amount of the debits exceeds the amount of the credits 
B)  there are more entries on the debit side than on the credit side 
C)  there are more entries on the credit side than on the debit side 
D)  the first entry of the accounting period was posted on the debit side

Question 20

Match each of the following accounts with its proper account group from the groups listed below.
​
-Prepaid Insurance

Accepted Answer

A) Assets 
B) Liabilities 
C) Owner's Equity 
D) Revenue 
E) Expenses 
A) Assets 
B) Liabilities 
C) Owner's Equity 
D) Revenue 
E) Expenses

Exam 2: Analyzing Transactions

On September 1, Erika Company purchased land for $47,500 cash. Provide the journal entry for this transaction.

When an owner invests assets in the business, the capital account increases due to revenue being earned.

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Wrong amount posted to an account

Revenues are equal to the difference between cash receipts and cash payments.

Which of the following entries records the payment of a bill for your insurance premium?

Which of the following accounts are debited to record increases?

Which of the following entries records the receipt of cash from clients on account?

A debit may signify a (n)

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

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Debit or credit posting omitted

On November 1, Nickle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land. Provide the journal entry for this transaction.

The order of the flow of accounting data is (1) record in the ledger, (2) record in the journal, and (3) prepare the financial statements.

A notation in the Post. Ref. column of the general journal indicates that the amount has been posted to the ledger.

Which of the following is an internal report that will determine if debit balances equal credit balances in the ledger?

Richardson Company has a condensed income statement as shown.​ Using horizontal analysis, calculate the amount and percent change for sales. Round to one decimal place.

An account is said to have a debit balance if

Match each of the following accounts with its proper account group from the groups listed below. ​ -Prepaid Insurance

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

Richardson Company has a condensed income statement as shown. Using horizontal analysis, calculate the amount and percent change for sales. Round to one decimal place.

Match each of the following accounts with its proper account group from the groups listed below. -Prepaid Insurance