Exam 2: Analyzing and Recording Business Transactions

Accounts that decrease on the credit side are liabilities, common shares, revenues, and retained earnings.

The general journal is used to record only the revenue transactions of a business.

Name the three major parts of a T-account.

Which would be best at proving the accounts balance?

The required accounting period for a trial balance is one year.

There are eight steps in the accounting cycle. List and describe the eight steps.

The __________ keeps a running balance of an individual account.

Monies owed to a company on a written promise to pay a fixed amount of money by a certain date would be called a __________.

Double-entry accounting requires that every business transaction impacts at least two different accounts.

Emily Ma started 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 statement of changes in equity for June 30, 2013.

ABC Corporation collected $600 from one of its customers for payment on their account. The journal entry would include a __________.

Using the accounts below, determine the accounts to be debited and credited for each of the transactions below. Accounts Cash Dividends Supplies Revenue Machinery Salaries Payable Accounts Payable Salaries Expense Retained Earnings Accounts Receivable Wages Expense Transactions 1. Paid wages for cash. 2. Purchased equipment for cash. 3. Earned revenue on account. 4. Purchased supplies on account. 5. Paid for supplies purchased in 4. 6. Received payment from customer in 3. 7. Paid employee salaries. 8. Purchased machinery on credit. 9. Paid dividends to shareholders.

ABC Corporation purchases a building for $35,000 cash. The journal entry would include a __________.

Every entry in the general journal should include all of the following EXCEPT:

Review the transactions below and determine whether you would use a debit or a credit to record the following changes. Indicate your decision by entering "Debit" or "Credit" in the right-hand column.

An example of accounts with normal debit balances would be:

Fire Alarm Services completed the following transactions in the month of March. Requirements Journalize each transaction and identify each transaction by date. Explanations not required.

Debit means:

Which is part of shareholders' equity?

Dividends, revenues, and expenses all: