Exam 2: The Recording Process

A credit is not the normal balance for which account listed below?

An account is often referred to as a T-account because of the way it is constructed.

On June 1, 2010, Alma Inc. reported a cash balance of $12,000. During June, Alma made deposits of $3,000 and made disbursements totalling $16,000. What is the cash balance at the end of June?

The journal provides a chronological record of transactions.

Some of the following errors would cause the debit and credit columns of the trial balance to have unequal totals. For each of the four cases, state whether the error would cause unequal totals in the trial balance. If the error causes unequal totals, indicate the amount of difference between the columns and state whether the debit or credit is larger. Each case is to be considered independently of the others. 1. A payment of $800 to a creditor was recorded by a debit to Accounts Payable of $80 and a credit to Cash of $800. 2. A $480 payment for a printer was recorded by a debit to Computer Equipment of $48 and a credit to Cash for $48. 3. An account receivable in the amount of $2,500 was collected in full. The collection was recorded by a debit to Cash for $2,500 and a debit to Accounts Payable for $2,500. 4. An account payable was paid by issuing a check for $800. The payment was recorded by debiting Accounts Payable $800 and crediting Accounts Receivable $800.

A debit to an account indicates an increase in that account.

Eight transactions are recorded in the following T-accounts: Indicate for each debit and each credit: (a) whether an asset, liability, capital, drawing, revenue, or expense account was affected and (b) whether the account was increased (+) or (-) decreased. Answers should be presented in the following chart form:

Use the information in BE 158 to answer the following questions. 1. What is the balance in Accounts Payable at June 30, 2010? 2. What is the balance in Accounts Receivable at June 30, 2010?

An accounting record of the balances of all assets, liabilities, and owner's equity accounts is called a

The chart of accounts is a

Martin's Mail Service purchased equipment for $2,500. Martin paid $500 in cash and signed a note for the balance. Martin debited the Equipment account, credited Cash and

Journalize the following transactions for Mercado Company for June 2010, the company's first month of operations. You may omit explanations for the transactions. 1. Purchased equipment on account for $3,000. 2. Billed customers $5,000 for services performed. 3. Made payment of $1,500 on account for equipment purchased earlier in month. 4. Collected $2,900 on customer accounts.

An account will have a credit balance if the

The ledger is merely a bookkeeping device and therefore does not provide much useful data for management.

Which one of the following represents the expanded basic accounting equation?

Customarily, a trial balance is prepared

A debit is not the normal balance for which of the following?

The first step in designing a computerized accounting system is the creation of the

The final step in the recording process is to transfer the journal information to the

A compound journal entry requires several debits to one account and several credits to one account.