Exam 2: Analyzing Transactions

The bookkeeper for Brockton Industries prepared the following journal entries and posted the entries to the general ledger as indicated in the T accounts presented. Assume that the dollar amounts and the descriptions of the entries are correct.​​ ​ ​ ​ RequiredIf you assume that all journal entries have been recorded correctly, use the above information to: (1) Identify the postings to the general ledger that were made incorrectly. (2) Describe how the each incorrect posting should have been made.

Which of the following statements is not true about liabilities?

Organize the following accounts into the usual sequence of a chart of accounts.Miscellaneous ExpenseAccounts PayableAccounts ReceivableCashAlecia Morris, CapitalFees EarnedPrepaid RentSalaries ExpenseUnearned RevenueAlecia Morris, Drawing

Debits will increase unearned revenues and revenues.

Journalizing always eliminates fraudulent activity.

In which of the following types of accounts are decreases recorded by debits?

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Balance incorrectly computed

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

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

Net income will result when

Which of the following statements regarding a horizontal analysis is false?

Which of the following is not true with a double-entry accounting system?

The purchase of supplies on account was recorded and posted as a debit to Supplies for $500 and a credit to Accounts Receivable for $500. The correcting entry would include a

On January 1, Merry Walker established a catering service. Listed below are accounts to use for transactions (a) through (f), each identified by a number. Following this list are the transactions that occurred in Walker's first month of operations. 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.​ Transactions Account(s) Debited Account(s) Credited a. Recorded jobs completed on account and sent invoices to customers. b. Received an invoice for truck expenses to be paid in February. c. Paid utilities expense ac Received cash from customers on account. e. Paid employee wages. f. Withdrew cash for personal use.

The Posting Reference columns are used to trace transactions from the ledger to the journal. What will be entered in the Posting Reference column of (1) the journal and (2) the ledger?

Expenses follow the same debit and credit rules as

Accounts

Which of the following groups of accounts have a normal debit balance?

Selected accounts from the ledger of Garrison Company appear below. For each account, indicate the following: (a) In the first column at the right, indicate the nature of each account, using thefollowing abbreviations: (b) In the second column, indicate the increase side of each account by insertingDr. or Cr.

All owner's equity accounts record increases to the accounts with credits.