Exam 2: The Recording Process

A trial balance does NOT prove that all transactions have been recorded or that the ledger is correct.

Another name for journal is

A journal is useful for

A compound journal entry may require debits to several accounts and credits to several accounts.

Customarily, a trial balance in a manual system is prepared

The transactions of the Make it Quick Delivery Service are recorded in the general journal below. Instructions a. a. Post the journal entries to the accounts in the general ledger below. b. b. Prepare a trial balance on the form provided.

Transactions for the Triple H Services company for the month of November are presented below: 1. Henry Highhat invested an additional $36,000 cash in the business. 2. Purchased land costing $18,000 for cash. 3. Purchased equipment costing $15,000 for $4,500 cash and the remainder on account. 4. Purchased supplies on account for $800. 5. Paid $3,000 for a one-year insurance policy. 6. Received $2,000 cash for services performed. 7. Received $4,000 for services previously performed on account. 8. Paid wages to employees for $2,500. 9. Paid $400 to Henry Highhat, the company's owner. Instructions Journalize each transaction and identify each transaction by number. You may omit journal explanations.

A trial balance would help in detecting which one of the following errors?

For the trial balance to balance, the debits must equal the credits.

The first step in the recording process is to enter the transaction information in a journal.

If a journal entry is NOT posted to an account, then the trial balance will NOT balance.

The ledger accounts of Victoria's Gym at June 30, 2014 are shown below: Instructions Prepare a trial balance with the ledger accounts arranged in the proper financial statement order. Include the appropriate heading. All accounts have normal balances.

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions. 1. The owner, Rose Wier, invests $35,000 in cash to start a real estate office operating as a sole proprietorship. 2. Purchased $400 of office supplies on credit. 3. Purchased office equipment for $6,000, paying $2,500 in cash and signed a 30-day, $3,500, note payable. 4. Real estate commissions billed to clients amounted to $4,000. 5. Paid $700 in cash for the current month's rent. 6. Paid $200 cash on account for office supplies purchased in transaction 2. 7. Received a bill for $500 for advertising for the current month. 8. Paid $2,200 cash for office salaries. 9. Rose Wier withdrew $1,200 from the business for living expenses. 10. Received a cheque for $3,000 from a client in payment on account for commissions billed in transaction 4.

Management could determine the amounts due from customers by examining which ledger account?

A debit to a liability account always indicates

The number and types of accounts used by different business enterprises are the same if generally accepted accounting principles are being followed by the enterprises.

Pat's Party Planning provides food service and bartending for private and corporate parties. Pat's does not prepare the food, but does provide supplies such as dishes, linens and ice for the event. The following transactions occurred in December 2014, the first month of the business operations: Instructions a. Prepare the journal entries for the above transactions. Explanations are not necessary. b. Prepare a trial balance at December 31, 2014 based on the above accounts.

Which one of the following is equivalent to the expanded basic accounting equation?

The left side of an account is

Which one of the following is NOT a part of an account?