Question 1

Prepare a journal entry on October 12 for the fees earned on account, $14,600. Omit explanation.

Accepted Answer

Oct. 12Accounts Rece

Question 2

When a business receives a bill from the utility company, no entry should be made until the invoice is paid.

Accepted Answer

A) True 
 B)False

Question 3

All of the following accounts are increased with a debit except

Accepted Answer

A)  Unearned Revenue 
B)  Land 
C)  Accounts Receivable 
D)  Cash 
A)  Unearned Revenue 
B)  Land 
C)  Accounts Receivable 
D)  Cash

Question 4

Expense accounts are increased by credits.

Accepted Answer

A) True 
 B)False

Question 5

Below is the unadjusted trial balance for Dawson Designs Co.Required
(1) Identify the errors in the trial balance. All accounts have normal balances.
(2) Prepare a corrected trial balance.

Accepted Answer

(1)a. The Debit column is added incorrec

Question 6

The following two situations are independent of each other.​
1. On June 1, the cash account balance was $45,750. During June, cash payments totaled $243,910, and the June 30 balance was $53,200. Determine the cash receipts during June and show your calculation.​
2. On March 1, the supplies account balance was $1,800. During March, supplies of $2,450 were purchased, and supplies of $630 were on hand as of March 31. Determine the supplies expense for March and show your calculation.

Accepted Answer

1. $53,200 = $45,750 + Cash Re

Question 7

Which of the following groups of accounts increases with a credit?

Accepted Answer

A)  capital, revenues, expenses 
B)  assets, capital, revenues 
C)  liabilities, capital, revenues 
D)  None of these choices 
A)  capital, revenues, expenses 
B)  assets, capital, revenues 
C)  liabilities, capital, revenues 
D)  None of these choices

Question 8

To determine the balance in an account, always subtract credits from debits.

Accepted Answer

A) True 
 B)False

Question 9

The chart of accounts classifies the accounts to make identification of the accounts easier. Describe the numbering system businesses use in setting up the chart of accounts.

Accepted Answer

A chart of accounts is set up by assigni

Question 10

Record the following selected transactions for April in a two-column journal, identifying each entry by letter:
(a)Received $18,000 from Katie Long, owner.
(b)Purchased equipment for $27,000, paying $10,000 in cash and giving a note payable for the remainder.
(c)Paid $2,300 for rent for April.
(d)Purchased $1,500 of supplies on account.
(e)Recorded $9,800 of fees earned on account.
(f)Received $7,500 in cash for fees earned.
(g)Paid $1,200 to creditors on account.
(h)Paid wages of $3,425.
(i)Received $7,900 from customers on account.
(j)Recorded owner's withdrawal of $1,875.

Accepted Answer

The answer of Record the following selected transactions for April...

Question 11

Which of the following accounts is an owner's equity account?

Accepted Answer

A)  Cash 
B)  Accounts Payable 
C)  Prepaid Insurance 
D)  Ross Morris, Capital 
A)  Cash 
B)  Accounts Payable 
C)  Prepaid Insurance 
D)  Ross Morris, Capital

Question 12

Which of the following is not considered to be a liability?

Accepted Answer

A)  Wages Payable 
B)  Accounts Receivable 
C)  Unearned Revenue 
D)  Accounts Payable 
A)  Wages Payable 
B)  Accounts Receivable 
C)  Unearned Revenue 
D)  Accounts Payable

Question 13

The accounts payable account is listed in the chart of accounts as an asset.

Accepted Answer

A) True 
 B)False

Question 14

A chart of accounts is a listing of accounts that make up the journal.

Accepted Answer

A) True 
 B)False

Question 15

A trial balance is prepared to

Accepted Answer

A)  prove that there were no errors made in recording transactions into the journal 
B)  prove that no errors were made in posting to the ledger 
C)  prove that each account balance is correct 
D)  discover errors that affect the equality of debits and credits 
A)  prove that there were no errors made in recording transactions into the journal 
B)  prove that no errors were made in posting to the ledger 
C)  prove that each account balance is correct 
D)  discover errors that affect the equality of debits and credits

Question 16

A chart of accounts is

Accepted Answer

A)  the same as a balance sheet 
B)  usually a listing of accounts in alphabetical order 
C)  usually a listing of accounts in financial statement order 
D)  used in place of a ledger 
A)  the same as a balance sheet 
B)  usually a listing of accounts in alphabetical order 
C)  usually a listing of accounts in financial statement order 
D)  used in place of a ledger

Question 17

The payment for the monthly rent will require which of the following entries?

Accepted Answer

A)  debit Cash and debit Rent Expense 
B)  credit Cash and credit Rent Expense 
C)  debit Rent Expense and credit Cash 
D)  credit Rent Expense and debit Cash 
A)  debit Cash and debit Rent Expense 
B)  credit Cash and credit Rent Expense 
C)  debit Rent Expense and credit Cash 
D)  credit Rent Expense and debit Cash

Question 18

A drawing account represents the amount of withdrawals made by the owner.

Accepted Answer

A) True 
 B)False

Question 19

The classification and normal balance of the drawing account are

Accepted Answer

A)  expense, credit balance 
B)  expense, debit balance 
C)  liability, credit balance 
D)  owner's equity, debit balance 
A)  expense, credit balance 
B)  expense, debit balance 
C)  liability, credit balance 
D)  owner's equity, debit balance

Question 20

Accounts are classified in the ledger

Accepted Answer

A)  chronologically 
B)  alphabetically 
C)  in accordance with their appearance in the financial statements 
D)  with the accounts used most often listed first 
A)  chronologically 
B)  alphabetically 
C)  in accordance with their appearance in the financial statements 
D)  with the accounts used most often listed first

Exam 2: Analyzing Transactions

Prepare a journal entry on October 12 for the fees earned on account, $14,600. Omit explanation.

When a business receives a bill from the utility company, no entry should be made until the invoice is paid.

All of the following accounts are increased with a debit except

Expense accounts are increased by credits.

Below is the unadjusted trial balance for Dawson Designs Co.Required (1) Identify the errors in the trial balance. All accounts have normal balances. (2) Prepare a corrected trial balance.

Which of the following groups of accounts increases with a credit?

To determine the balance in an account, always subtract credits from debits.

The chart of accounts classifies the accounts to make identification of the accounts easier. Describe the numbering system businesses use in setting up the chart of accounts.

Which of the following accounts is an owner's equity account?

Which of the following is not considered to be a liability?

The accounts payable account is listed in the chart of accounts as an asset.

A chart of accounts is a listing of accounts that make up the journal.

A trial balance is prepared to

A chart of accounts is

The payment for the monthly rent will require which of the following entries?

A drawing account represents the amount of withdrawals made by the owner.

The classification and normal balance of the drawing account are

Accounts are classified in the ledger

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

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