Exam 3: Processing Accounting Information

All of the following are external events (transactions) except for

Each account has a normal balance.For the following list of accounts, indicate whether the normal balance of each is a debit or a credit. -Wages and Salaries Payable

If a company purchases equipment by issuing a note payable, its total assets will not change.

Wolfe Inc.reports these account balances at January 1, 2016: Retained Earnings \ 49,000 Accounts Receivable 20,000 Accounts Payable 24,000 Capital Stock 185,000 Land 153,000 Cash 13,000 Equipment 20,000 Notes Payable 28,000 Buildings 80,000 ​ ​ -See the account balances for Wolfe Inc. ? On January 31, Wolfe collected $12,000 of its accounts receivable and paid $11,000 on its note payable.In Wolfe's trial balance prepared on January 1, 2016, the total of the credit column is:

A credit means that

Each account has a normal balance.For the following list of accounts, indicate whether the normal balance of each is a debit or a credit. -Advertising Fees Earned

Which of the following events (transactions) is an internal event for a business entity?

Your bookkeeper is off for the day and you are trying to figure out what her last entry in the journal could be for.Unfortunately, she only recorded the debit side of the transaction as $4,400 to Accounts Payable.It is possible that this debit could correspond to:

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Accounts Payable

Use the following five transactions for Monaco & Associates, Inc.to answer the question(s). october 1 Bills are sent to clients for services provided in September in the amount of \ 800 . 9 Dravo Co. delivers office fumiture (\ 1,060) and office supplies (\ 160) to Monaco leaving an invoice for \ 1,220 . 15 Payment is made to Dravo Co. for the furniture and office supplies delivered on October 9. 23 A bill for \ 430 for electricity for the month of September is received and will be paid on its due date in November. 31 Salaries of \ 850 are paid to employees. -See the transactions to Monaco & Associates. The journal entry to record the October 23 transaction will include a credit of $430 to

Services are provided for customers who pay for the services immediately.For this transaction, identify the effect on the accounting equation.

If the landlord has rent _________, then the tenant has rent _________.

Use the five transactions for Hennigan Company described below to answer the question(s) that follow(s). Dec 1 Hennigan purchases two new saws on credit at $\$ 375$ each. The saws are added to Hennigan's rental inventory. Payment is due in 30 days. 8 Hennigan accepts advance deposits for to ol Company of $\$ 75$ . 15 Hennigan receives a bill from Farmer's Electric Company for $\$ 150$ . Payment is due in 30 days. 20 Customers are charged $\$ 750$ by Hennigan for tool Company. Payment is due from the customers in 30 days. 31 Hennigan receives $\$ 500$ in payments from the customers that were billed for Company on December 20. -Refer to the transactions for Hennigan Rentals. Based on the October 31 transaction, Hennigan will record which of the following in its accounting records?

Use the five transactions for Hennigan Company described below to answer the question(s) that follow(s). Dec 1 Hennigan purchases two new saws on credit at $\$ 375$ each. The saws are added to Hennigan's rental inventory. Payment is due in 30 days. 8 Hennigan accepts advance deposits for to ol Company of $\$ 75$ . 15 Hennigan receives a bill from Farmer's Electric Company for $\$ 150$ . Payment is due in 30 days. 20 Customers are charged $\$ 750$ by Hennigan for tool Company. Payment is due from the customers in 30 days. 31 Hennigan receives $\$ 500$ in payments from the customers that were billed for Company on December 20. -Refer to the transactions for Hennigan Rentals. Based on the October 15 transaction, Hennigan will record which of the following in its accounting records?

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -A vendor for a company's supplies is paid an amount owed on account.

Each account has a normal balance.For the following list of accounts, indicate whether the normal balance of each is a debit or a credit. -Dividends

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Cash

The ledgers are an example of an accounting book of original entry.

A trial balance can be distributed to stockholders in place of the balance sheet.

Use the following five transactions for Monaco & Associates, Inc.to answer the question(s). october 1 Bills are sent to clients for services provided in September in the amount of \ 800 . 9 Dravo Co. delivers office fumiture (\ 1,060) and office supplies (\ 160) to Monaco leaving an invoice for \ 1,220 . 15 Payment is made to Dravo Co. for the furniture and office supplies delivered on October 9. 23 A bill for \ 430 for electricity for the month of September is received and will be paid on its due date in November. 31 Salaries of \ 850 are paid to employees. -See the transactions for Monaco & Associates. Based only on these transactions, what is the total amount of expenses that should appear on the income statement for the month of October?