Exam 2: Analyzing and Recording Business Transactions

The credit (right) side of an account shows an increase or decrease depending upon the type of account.

Given the following general ledger template, identify the parts of the ledger. Account Cash Account Number 111

The general ledger is arranged in the __________order of the chart of accounts.

Post the general journal below to the appropriate T-accounts. You need not fill in the PR column below.

Office furniture, wages payable, and dividends have normal balances of __________, __________, and __________, respectively.

Prepare a trial balance from the following information for Learn a New Language, Inc. for December 31, 2013.

A T-account has a $922 credit balance. This account is most likely:

Prepare general journal entries for the following business transactions Identify each transaction by date. Explanations and posting reference are not required. Dec 1. Received $35,000 cash for issuing common shares. 2. Purchased machinery for $50,000, paying $15,000 in cash and giving a note payable for the remainder. 10. Paid $3,000 for a one-year insurance policy. 11. Billed customers for $21,500 of services provided on account. 15. Paid monthly rent of $2,500. 16. Performed $17,000 of services and immediately received $7,000 cash. 22. Hired an administrative assistant. Weekly wages are $750 per week. 25. Collected $8,000 from customers on account. 31. Paid the administrative assistant the first week's salary.

An account numbered 321 would be considered a shareholders' equity account as it begins with a 3.

Emily Ma started an Energy Saving Service in June 2013. The account balances on June 30, 2013 are provided below. All accounts have normal balances. One hundred (100) common shares were issued in June 2013. Requirements Prepare Emily's income statement.

The T-account aids in separating:

Magic Music DJ Service is a DJ Service in Ottawa providing music for weddings and private parties. The account balances at December 31, 2013 are below. Requirements Prepare a trial balance in proper accounting format.

The account "Notes Payable" had the following changes: increase of $500, increase of $200, decrease of $550, and an increase of $250. The final balance is a __________.

The posting reference column of the general ledger shows the sources of the transferred information.

Journalize the following business transactions in general journal form. Identify each transaction by date. Explanations are not required.

A trial balance is a list of the accounts and their balances taken from the general journal.

Payment of a telephone bill represents a(n) __________.

Accounts payable, taxes payable, and notes payable increase on the debit side and decrease on the credit side.

A listing of all accounts in numerical order is called a chart of accounts.

A type of company asset in which a customer owes the company money would be a __________.