Exam 13: Appendix A: The Language of Accountants: Debits and Credits

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Collected amounts due from customers billed in transaction

During the current accounting period, Bentley Company paid $1,000 for advertising services in advance of receiving them. Prepaid Advertising was debited and Cash was credited for $1,000. At the end of the accounting period, three-fourths of the services paid for had yet to be received. The proper adjusting entry is:

The complete accounting cycle begins with the analysis of transactions and ends with the preparation of financial statements.

The normal balance for an account is the side in which increases are recorded.

On January 18, 2019, MetroPlex paid $12,000 for a two-year insurance premium that covers February 1, 2019 through January 31, 2021. MetroPlex's year-end is March 31. Required a. What entry is made on January 18, 2019? b. What adjusting entry should be made on March 31, 2019 before the financial statements are prepared for the year ending March 31, 2019?

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Made partial payment for equipment purchased in transaction

On April 1, Smith & Johnson paid $30,000 for rent on warehouse space one year in advance. If Smith & Johnson makes the appropriate adjusting entry, how much will be reported on the December 31 balance sheet as prepaid rent?

United Delivery, Inc. has the following accounts (among others) in its general ledger: Cash; Accounts Receivable; Prepaid Rent; Supplies; Delivery Equipment; Accounts Payable; Unearned Delivery Fees; Common Stock; Dividends; Delivery Fees Earned; Rent Expense; and Salaries Expense. Prepare general journal entries to record the following transactions:

Office Supplies had a beginning balance of $8,000. During the month, purchases of office supplies totaling $2,000 were debited to the Office Supplies account. If $3,000 worth of office supplies is still on hand at month-end, what is the proper adjusting entry?

The trial balance prepared before the general ledger accounts are adjusted is called an adjusted trial balance.

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Paid employees' salaries

Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first) -Billed customers for services rendered.

All accounts have normal balances on the debit side.

During the current accounting period, Mulholland Company paid $1,000 for advertising services in advance of receiving them. Prepaid Advertising was debited and Cash was credited for $1,000. At the end of the accounting period, three-fourths of the services paid for had been received. The proper adjusting entry is:

In a double-entry accounting system:

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

On September 1, Best Company began a contract to provide services to Dildwood Company for six months, with the total $10,800 payment to be made at the end of the six-month period. Equal services are provided each month. The firm uses the account Fees Receivable to reflect amounts due but not yet billed. What proper adjusting entry would Best Company make on December 31, the end of the accounting period (no previous adjustment has been made)?

Kitty Condos provides pet grooming and boarding services for domestic cats. The company has been in existence for 12 years. At December 31, 2019, Kitty Condo's adjusted trial balance is as follows: Required a. Prepare closing entries in journal entry form. b. After Kitty Condo's closing entries are posted, what is the balance in the Retained Earnings account? c. Prepare Kiddy Condo's post-closing trial balance.

Selected T-account balances for Smith & Johnson are shown below as of January 31. Adjusting entries have already been posted. The firm uses a calendar-year accounting period but prepares monthly adjustments. Required a. During January, $2,000 worth of supplies were purchased. If the amount in Supplies Expense represents the January 31 adjustment for the supplies used in January, what was the January 1 beginning balance of Supplies? b. The insurance premium purchased was valid for one year. The amount in the Insurance Expense account represents the adjustment made at January 31 for January insurance expense. What was the amount of the premium and on what date did the insurance policy start? c. No beginning balance existed in Wages Payable or Wages Expense on January 1. How much cash was paid as wages during January? d. The truck has a useful life of five years, what is the monthly amount of depreciation expense and how many months has Smith & Johnson owned the truck?

The typical form of a T-account shows debits on the right and credits on the left.