Exam 2: Processing Accounting Information

Lipsey Company's Accounts Payable account had a balance of $3,700 on September 1, and a balance of $4,500 on September 30. During September, the company made total payments of $32,800 on accounts payables. What must have been their total purchases on account during September?

A printed or written form that is generated when a firm engages in a business transaction defines a:

Beginning and ending Cash account balances were $7,000 and $16,000 respectively. If total cash paid out during the period was $15,000, what amount of cash was received during the period?

Which of the following will properly record the payment of a two-year insurance policy?

During its first month of operations, Donald Company borrowed $100,000 from a bank, and then purchased equipment costing $40,000 by paying cash of $20,000 and signing a long term note for the remaining amount. During the month, the company also purchased Inventory for $30,000 on credit, performed services for clients for $10,000 on account, paid $15,000 cash for accounts payable, and paid $30,000 cash for utilities. What is the amount of total assets at the end of the month?

On November 30, Milia Company had Accounts Receivable of $65,140. During the month of December, the company received total payments of $80,000 from credit customers. The Accounts Receivable on December 31 was $43,160. What was the amount of credit sales during December?

Recording the borrowing of money for which a note is signed involves:

Match each of the numbered transactions of a corporation with the appropriate letters, indicating the effect of the transactions (increases and decreases -Purchased equipment on account.

An economic event that requires accounting recognition defines:

When a firm purchases equipment for cash, both assets and stockholders' equity increase.

Chaffin Consulting performed consulting services during June on account, and collections for these services were not received until August. What effect did performing these services have on the accounting equation during June?

Paying a previously recorded invoice from a supplier (of supplies) involves:

A chart of accounts is a list of the title and numerical code of all accounts in the general ledger.

Which of the following transactions will record the payment of an $850 accounts payable originally incurred for Office Supplies?

Account titles are commonly grouped into what five categories in the chart of accounts?

A company bills customers for services rendered on account. Which of the following is one part of recording this transaction?

Jackson Company purchased a new car for $30,000 by paying $12,000 cash, and trading in an old car with a recorded net cost and market value of $10,000. They also signed a Note for $8,000. The required journal entry will not:

The first five steps in the accounting cycle occur with equal frequency.

All companies have a fiscal year ending on December 31.

Compute the unknown amount required in each of the following four independent situations. a.Total cash received $ _____________ b. Total amount received from credit customers $ _____________ c. Payments on account during the period $ _____________ d. Services rendered for cash $ _____________