Exam 2: The Recording Process

Journalize the following transactions for Xiu Xiu Company for June 2015, the company's first month of operations. You may omit explanations for the transactions. 1. Purchased equipment on account for $9,000. 2. Billed customers $5,000 for services performed. 3. Made payment of $2,300 on account for equipment purchased earlier in month. 4. Collected $2,900 on customer accounts.

Posting of journal entries should be done in

Which of the following statements is false?

The recording process becomes more efficient and informative if all transactions are recorded in one account.

The ledger accounts of the Fabulous Muscles Gym at June 30, 2018 are shown below: Accounts Payable \ 9,100 Accounts Receivable 1,050 Buildings 43,000 Cash 14,100 Common Stock 62,800 Dividends 10,500 Equipment 42,900 Notes Payable 40,000 Supplies 350 Instructions Prepare a trial balance with the ledger accounts arranged in the proper financial statement order. Include the appropriate heading.

For each of the following accounts, indicate the effects of (a) a debit and (b) the normal account balance. 1. Notes Payable 2. Prepaid Insurance 3. Salaries and Wages Expense 4. Service Revenue 5. Equipment 6. Common Stock

At September 1, 2018, Promise Ring Co. reported stockholders' equity of $156,000. During the month, Promise Ring generated revenues of $38,000, incurred expenses of $21,000, purchased equipment for $5,000 and paid dividends of $2,000. What is the amount of stockholders' equity at September 30, 2018?

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

Sigur Ros Company is a newly organized business. The list of accounts to be opened in the general ledger is as follows: Accounts Payable Prepaid Insurance Accounts Receivable Prepaid Rent Accumulated Depreciation Rent Expense Cash Salaries and Wages Expense Common Stock Salaries and Wages Payable Depreciation Expense Service Revenue Dividends Supplies Equipment Utilities Expense Insurance Expense Instructions Organize the accounts into the order in which they should appear in the ledger of Sigur Ros Company and assign account numbers. Use the following system to assign account numbers. 1-199 Assets 200-299 Liabilities 300-399 Stockholders' Equity 400-499 Revenues 500-599 Expenses

The chart of accounts used by Notwist Copy Company is listed below. You are to indicate the proper accounts to be debited and credited for the following transactions by writing the account number(s) in the appropriate boxes. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text {CHART OF ACCOUNTS}$ 101 Cash 209 Unearned Service Revenue 112 Accounts Receivable 311 Common Stock 125 Supplies 332 Dividends 157 Equipmest 400 Service Revenue 200 Notes Payable 610 Advertising Expense 201 Accounts Payable 729 Rent Expense

Eight transactions are recorded in the following T-accounts: Indicate for each debit and each credit: (a) whether an asset, liability, stockholders' equity, revenue, or expense account was affected and (b) whether the account was increased (+) or (-) decreased. Answers should be presented in the following chart form:

Customarily, a trial balance is prepared

Devendra Company pays cash dividends of $600. The entry for this transaction will include a debit of $600 to

The chart of accounts is a listing of the accounts and the account numbers which identify their location in the ledger.

At January 1, 2018, Alligator Industries reported retained earnings of $150,000. During 2018, Alligator had a net loss of $30,000 and paid dividends of $15,000. At December 31, 2018, the amount of retained earnings is

TNT has the following transactions during April of the current year. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis. Apr. 1 Opens a law office, investing $25,000 in cash. 4 Pays rent in advance for 6 months, $9,000 cash. 16 Receives $8,000 from clients for services provided. 27 Pays secretary $2,800 salary.

On July 7, 2018, Hidden Camera Enterprises performed cash services of $1,700. The entry to record this transaction would include

Transactions are entered in the ledger accounts and then transferred to journals.

The double-entry accounting system is the basis of accounting systems