Exam 2: The Recording Process

A chart of accounts usually starts with

At December 1, 2018, Cursive Company's accounts receivable balance was $1,800. During December, Cursive had revenues on account of $7,200 and collected accounts receivable of $6,000. At December 31, 2018, the accounts receivable balance is

During 2018, its first year of operations, Neko's Bakery had revenues of $60,000 and expenses of $35,000. The business paid dividends of $20,000. What is the amount of stockholders' equity at December 31, 2018?

Which of the following journal entries is recorded correctly and in the standard format? a. Salaries and Wages Expense 500 Cash 1,500 Advertising Expense 1,000 b. Salaries and Wages Expense 500 Advertising Expense 1,000 Cash 1,500 c. Cash 1,500 Salaries and Wages Expense 500 Advertising Expense 1,000 d. Salaries and Wages Expense 500 Advertising Expense 1,000 Cash 1,500

Revenues are a subdivision of retained earnings.

During an accounting period, a business has numerous transactions affecting each of the following accounts. State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. (1) Advertising Expense (6) Dividends (2) Service Revenue (7) Cash (3) Accounts Payable (8) Salaries and Wages Expense (4) Accounts Receivable (9) Notes Payable (5) Common Stock (10) Insurance Expense

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

A journal provides

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transaction. 1. Andrew Bird invested $35,000 cash in exchange for stock. 2. Hired an employee to be paid $400 per week, starting tomorrow. 3. Paid two years' rent in advance, $7,440. 4. Paid the worker's weekly wage. 5. Recorded revenue earned and received for the week, $1,900.

The account titles used in journalizing transactions need not be identical to the account titles in the ledger.

The best interpretation of the word credit is the

Deerhoof Company purchases equipment for $2,700 and supplies for $400 from Milkman Co. for $3,100 cash. The entry for this transaction will include a

The final step in the recording process is to

The entire group of accounts maintained by a company is called the

If a revenue account is credited, the revenue account is increased.

In recording an accounting transaction in a double-entry system

The journal provides a chronological record of transactions.

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

The complete effect of a transaction on the accounts is disclosed in the journal.

Which of the following is true?