Exam 2: Analyzing and Recording Business Transactions

The Fireworks Company has the following T- accounts their transactions for July 2013 are included below. Requirements (a) For each transaction, journalize the transaction, including an explanation for the entry. (b) Determine the ending account balance for each account. (c) Prepare a trial balance as at July 2013.

Phillip started his physiotherapy business in March 2013. Phillip's physiotherapy clinic for March 31, 2013 is provided below. All accounts have normal balances. Phillip issued sixty-three (63) common shares in March. Requirements Part A Prepare a trial balance using the correct financial presentation. Remember to include the correct headings. Part B Prepare an income statement for March 2013. Part C Prepare a statement of changes in equity for March 2013. Part D Prepare a statement of financial position for March 2013.

Journalizing is the transfer of information from the general journal to the general ledger.

Instead of T-accounts, businesses more than likely use a:

The general ledger accounts for Corey's Candle Company for the month of January 2013 are shown below. All accounts have normal balances. Requirements Prepare a trial balance with the general ledger accounts in the proper financial statement order.

For the following general ledger accounts, identify the normal balance of the account. Example: Accounts Payable Credit Accounts Receivable Building Cash Common Shares Dividends Equipment Inventory Land Notes Payable Office Equipment Office Supplies Rental Expense Service Revenue Travel Expense Utilities Expense Wages Expense

Post the following general journal to the T-accounts provided below.

Obligations owed by a company to banks, for instance, are called __________.

Items of value that a company owns are called shareholders' equity.

List the order in which each of the following accounts would appear in a chart of accounts. Utilities expenses, Tax return revenue, Accounts receivable, Income taxes payable

An example of accounts with normal credit balances would be:

An account starting with a number 1 would indicate __________.

Post the following transactions to T-accounts.

For each of the following general ledger accounts identify: (a) the type of account (Asset, Liability, Shareholders Equity, Revenue, Expense), (b) the debit and credit effects, and (c) the normal account balance.

An investment of cash in a business increases which account?

On the trial balance, which should have their balances listed in the credit column?

The columns on a trial balance represent __________.

A T-account has a $299 debit balance. This account is most likely:

Normal balance refers to the positive increase of an account and identifies the side of the account (Debit or Credit) to which this positive balance is recorded.

The trial balance: