Exam 2: Analyzing Transactions

All of the following statements regarding a horizontal analysis are true except:

If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors were made.

The balance of the account can be determined by adding all of the debits, adding all of the credits, and adding the amounts together.

The erroneous moving of an entire number one or more spaces to the right or left, such as writing $85 as $850, is called a transposition.

During May, $245,000 was paid to creditors on account, and purchases on account were $210,500. Assuming the May 31 balance of Accounts Payable was $62,800, what was the account balance on May 1.

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

On November 10, JumpStart Co. provides $2,900 in services to clients. At the time of service, the clients paid $600 in cash and put the balance on account.(a) Journalize this event.​ (b) On November 20, JumpStart Co. clients paid an additional $900 on their accounts due. Journalize this event.​ (c) Calculate the accounts receivable balance on November 30.

Which of the following abbreviations is correct?

On January 1, Merry Walker and other stockholders established a catering service. Listed below are accounts to use for transactions (a) through (d), each identified by a number. Following this list are the transactions that occurred during the first month of operations. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box. 1.Cash 2.Accounts Receivable 3.Supplies 4.Prepaid Insurance 5.Equipment 6.Truck 7.Notes Payable 8.Accounts Payable 9.Common Stock 10.Dividends 11.Fees Earned 12.Wages Expense 13.Rent Expense 14.Utilities Expense 15.Truck Expense 16.Miscellaneous Expense

Calculate the following:

Debiting the cash account will increase the account.

An account is said to have a debit balance if

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 entries records the payment of dividends?

The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.​ Total assets are

Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down, with the remainder to be paid later. The correct entry would be

A chart of accounts is

A debit balance in which of the following accounts would indicate a likely error?

Which of the following transactions increases stockholders' equity?

Transactions are initially entered into a record called a journal.