Exam 3: Recording Transactions

The entry to close expense accounts involves

A ledger contains only balance sheet accounts kept up-to-date in a systematic way.

Wilham Roofing acquired merchandise inventory for $12,000,paying one-fourth in cash and the remainder on open account.Which of the following is the journal entry necessary to record this transaction?

From the following information,determine the ending balance in Retained Earnings. 1. Faginning Retained Eamings \ 6,200 2. Cash 1,900 3. Acrounts Payzble 1,100 4. Sales 27,000 5. Merchandise Inventory 9,200 6. Cost of Goods Sold 14,400 7. Salary Experse 9,900

The account numbers from the chart of accounts are

Over time,the cost of processing accounting information has increased.

Journalizing is the analysis of the effects of a transaction on the accounts,usually accompanied by an explanation.

T-accounts can only be used for income statement accounts.

If an accountant erroneously records an $8,000 credit to Accounts Payable instead of an $8,000 debit to the Cash account,the Accounts Payable account will be

The trial balance should be prepared

Picture Perfect Videos acquired $18,000 of equipment by paying $6,000 in cash,with the remaining balance on a note due in 6 months.Which set of T-accounts best describes this transaction?

Northstar Enterprises had the following balances as of December 31,2011: Accounts Receivable \ 21,600 Accounts Payable \ 14,300 Unearned Revenue \ 6,100 During 2012,the following activity occurred: 1.$73,100 was paid by customers in advance for work to be performed by the company.The balance in the unearned revenue account as of December 31,2012,was $7,700. 2.Credit sales were $497,100.As of December 31,2012,the accounts receivable balance was $32,900. 3.Accounts payable is solely attributable to the acquisition of merchandise inventory on account.Credit purchases of merchandise inventory during 2012 were $291,000.The balance in accounts payable as of December 31,2012,was $13,100. Required: a.What was the amount of cash received from credit customers in 2012? b.How much cash was paid by the company for the credit purchase of merchandise inventory related to its accounts payable in 2012? c.How much sales revenue was recognized by the company in 2012,related to the work performed for customers who paid in advance?

Posting is the process of transferring information from the

Bethany Industries purchased $3,000 of merchandise inventory,paying cash for 20% of the purchase,with the remainder on account.The entry would include a

Which of the following accounts are expected to have a debit normal balance? 1.Merchandise Inventory 2)Rent Expense 3)Paid-in Capital 4)Accumulated Depreciation 5)Sales 6)Prepaid Rent 7)Accounts Payable

The accumulated depreciation is sometimes referred to as the allowance for depreciation.

If the entry to journalize expired supplies is not prepared,liabilities will be overstated.

If the debit side of a journal entry is posted but the credit side is not,the trial balance will not balance.

To record the prepaid rent that has expired during the period,the entry would include a debit to

Closing entries are generally performed at the beginning of the accounting period.