Gi Gi's Dance Studio provided $150 of dance instruction and rented out its dance studio to the same client for another $100. The client paid immediately. Identify the general journal entry below that Gi Gi's will make to record the transaction. A) $\begin{array}{|l|r|r|} \hline \text { Accounts Receivable } & 250 & \\ \hline \text { Rental Revenue } & & 100 \\ \hline \text { Instruction Revenue } & & 150 \\ \hline \end{array}$ B) $\begin{array}{|l|r|r|} \hline \text { Unearned Revenue } & 250 & \\ \hline \text { Rental Revenue } & & 100 \\ \hline \text { Instruction Revenue } & & 150 \\ \hline \end{array}$ C) $\begin{array}{|l|r|r|} \hline \text { Rental Revenue } & 100 & \\ \hline \text { Instruction Revenue } & 150 & \\ \hline \text { Cash } & & 250 \\ \hline \end{array}$ D) $\begin{array}{|l|r|r|} \hline \text { Accounts Payable } & 250 & \\ \hline \text { Rental Revenue } & & 100 \\ \hline \text { Instruction Revenue } & & 150 \\ \hline \end{array}$ E) $\begin{array}{|l|r|r|} \hline \text { Cash } & 250 & \\ \hline \text { Rental Revenue } & & 100 \\ \hline \text { Instruction Revenue } & & 150 \\ \hline \end{array}$

The answer of Gi Gi's Dance Studio provided $150 of...

Mary Martin, the owner of Martin Consulting, started the business by investing $40,000 cash. Identify the general journal entry below that Martin Consulting will make to record the transaction. \[\begin{array}{l} \text { A) }\\ \begin{array} { | l | r | r | } \hline \text { Investments } & 40,000 & \\ \hline \text { M. Martin, Capital } & & 40,000 \\ \hline \end{array} \end{array}\] B) $\begin{array}{|l|r|r|} \hline \text { Cash } & 40,000 & \\ \hline \text { M. Martin, Capital } & & 40,000 \\ \hline \end{array}$ C) $\begin{array}{|l|r|r|} \hline \text { M. Martin, Capital } & 40,000 & \\ \hline \text { Cash } & & 40,000 \\ \hline \end{array}$ D) $\begin{array}{|l|r|r|} \hline \text { Investments } & 40,000 & \\ \hline \text { Cash } & & 40,000 \\ \hline \end{array}$ E) $\begin{array}{|l|r|r|} \hline \text { Cash } & 40,000 & \\ \hline \text { Increased Equity } & & 40,000 \\ \hline \end{array}$

The answer of Mary Martin, the owner of Martin Consulting,...

Exam 2: Analyzing and Recording Transactions

If an owner's capital account had a $10,000 credit balance at the beginning of the period, and during the period, the owner invests an additional $5,000, the balance in the capital account listed on the trial balance will be equal to a debit balance of $5,000.

(True/False)

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Question 141

Explain debits and credits and their role in the accounting system of a business.

(Essay)

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Question 142

The debt ratio is used:

(Multiple Choice)

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Question 143

Gi Gi's Dance Studio provided $150 of dance instruction and rented out its dance studio to the same client for another $100. The client paid immediately. Identify the general journal entry below that Gi Gi's will make to record the transaction. A) Accounts Receivable 250 Rental Revenue 100 Instruction Revenue 150 B) Unearned Revenue 250 Rental Revenue 100 Instruction Revenue 150 C) Rental Revenue 100 Instruction Revenue 150 Cash 250 D) Accounts Payable 250 Rental Revenue 100 Instruction Revenue 150 E) Cash 250 Rental Revenue 100 Instruction Revenue 150

(Short Answer)

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Question 144

Identify the correct formula below used to calculate the debt ratio.

(Multiple Choice)

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Question 145

Preparation of a trial balance is the first step in processing a financial transaction.

(True/False)

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Question 146

Identify the statement below that is incorrect.

(Multiple Choice)

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Question 147

Mary Martin, the owner of Martin Consulting, started the business by investing $40,000 cash. Identify the general journal entry below that Martin Consulting will make to record the transaction. A) Investments 40,000 M. Martin, Capital 40,000 B) Cash 40,000 M. Martin, Capital 40,000 C) M. Martin, Capital 40,000 Cash 40,000 D) Investments 40,000 Cash 40,000 E) Cash 40,000 Increased Equity 40,000

(Short Answer)

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Question 148

Asset accounts normally have debit balances and revenue accounts normally have credit balances.

(True/False)

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Question 149

A business's source documents may include all of the following except:

(Multiple Choice)

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Question 150

At a given point in time, a business's trial balance is a list of all of its general ledger accounts and their balances.

(True/False)

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Question 151

Owner's withdrawals are not reported on a business's income statement.

(True/False)

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Question 152

Describe what source documents are and the purpose they serve in a business.

(Essay)

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Question 153

Identify the account below that impacts the Equity of a business:

(Multiple Choice)

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Question 154

Provided below is a list of definitions and terms. Match the term with correct definition.

Compound journal entry

A journal entry that affects at least three accounts.

T-account

A list of all accounts used by a company and the identification number assigned to each account.

Posting

The process of transferring journal entry information to the ledger.

Correct Answer:

Verified

Compound journal entry

T-account

Posting

Trial Balance

Unearned revenues

Account

General journal

Posting reference column

Chart of accounts

Note receivable

(Matching)

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Question 155

Identify the statement below that is correct.

(Multiple Choice)

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Question 156

A column in journals and ledger accounts that is used to cross reference journal and ledger entries is the:

(Multiple Choice)

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Question 157

An income statement is also called an earnings statement, a statement of operations or a profit and loss statement.

(True/False)

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Question 158

A transaction that credits an asset account and credits a liability account must also affect one or more other accounts.

(True/False)

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Question 159

If cash is received from customers in payment for products or services that have not yet been delivered to the customers, the business would record the cash receipt as:

(Multiple Choice)

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Question 160

If an owner's capital account had a $10,000 credit balance at the beginning of the period, and during the period, the owner invests an additional $5,000, the balance in the capital account listed on the trial balance will be equal to a debit balance of $5,000.

Explain debits and credits and their role in the accounting system of a business.

The debt ratio is used:

Identify the correct formula below used to calculate the debt ratio.

Preparation of a trial balance is the first step in processing a financial transaction.

Identify the statement below that is incorrect.

Asset accounts normally have debit balances and revenue accounts normally have credit balances.

A business's source documents may include all of the following except:

At a given point in time, a business's trial balance is a list of all of its general ledger accounts and their balances.

Owner's withdrawals are not reported on a business's income statement.

Describe what source documents are and the purpose they serve in a business.

Identify the account below that impacts the Equity of a business:

Identify the statement below that is correct.

A column in journals and ledger accounts that is used to cross reference journal and ledger entries is the:

An income statement is also called an earnings statement, a statement of operations or a profit and loss statement.

A transaction that credits an asset account and credits a liability account must also affect one or more other accounts.

If cash is received from customers in payment for products or services that have not yet been delivered to the customers, the business would record the cash receipt as:

Accounting in Business

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resoures, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

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