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

Explore all topics

Forrester Company signed a two-year lease on July 1 and paid the $17,400 total rent in advance. Forrester recorded the transaction as a debit to Prepaid Rent and a credit to Cash. What adjusting entry should Forrester make on December 31 (no previous adjustment has been made)?

(Multiple Choice)

4.7/5

(40)

Question 121

Best Graphics has the following accounts in its general ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Service Fees Earned; Rent Expense; and Salaries Expense. Prepare general journal entries to record the following transactions:

(Essay)

4.9/5

(43)

Question 122

Transactions are first recorded in a journal and then posted to the general ledger.

(True/False)

4.9/5

(35)

Question 123

Likert Company calculates that interest of $900 has accrued at December 31 on outstanding notes payable. How should Likert record this on December 31?

(Multiple Choice)

4.9/5

(39)

Question 124

One reason for preparing a trial balance is to determine if the debits and credits in the general ledger are equal.

(True/False)

4.8/5

(36)

Question 125

Debits to which accounts result in an increased balance?

(Multiple Choice)

4.9/5

(41)

Question 126

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) -Received and immediately paid repair bill.

(Multiple Choice)

4.9/5

(46)

Question 127

At the end of the accounting period, the Legal Fees Earned account has a normal balance of $75,000. The accountant makes two adjustments--one to accrue unbilled legal fees earned of $2,500, and the other to reduce the Unearned Legal Fees liability account by $500. After the adjustments are posted, the Legal Fees Earned account has a balance of

(Multiple Choice)

4.9/5

(38)

Question 128

Showing 121 - 128 of 128

Forrester Company signed a two-year lease on July 1 and paid the $17,400 total rent in advance. Forrester recorded the transaction as a debit to Prepaid Rent and a credit to Cash. What adjusting entry should Forrester make on December 31 (no previous adjustment has been made)?

Best Graphics has the following accounts in its general ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Service Fees Earned; Rent Expense; and Salaries Expense. Prepare general journal entries to record the following transactions:

Transactions are first recorded in a journal and then posted to the general ledger.

Likert Company calculates that interest of $900 has accrued at December 31 on outstanding notes payable. How should Likert record this on December 31?

One reason for preparing a trial balance is to determine if the debits and credits in the general ledger are equal.

Debits to which accounts result in an increased 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) -Received and immediately paid repair bill.

Financial Accounting and Business Decisions

Processing Accounting Information

Accrual Basis of Accounting

Understanding Accounting Information

Internal Control and Cash

Receivables

Inventory

Property, Plant and Equipment and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Appendix B: Accounting for Investments and Consolidated Financial Statements

Appendix C: Accounting and the Time Value of Money

Filters