Exam 3: Recording Transactions

Indirect Personnel,Inc.obtained a $20,000 note payable on August 1,2012,that is due in 5 years.Interest,at an annual rate of 12%,will be paid once a year on July 31.The accountant made the appropriate journal entry on August 1,2012.No other journal entry has been made.What journal entry is necessary as of December 31,2012?

The purchase of office equipment on account would increase assets and decrease stockholders' equity.

Contributor Enterprise borrowed $2,400 on February 1,2012.All interest has been paid and properly recorded for separately.On March 31,2012,the company repaid the loan.Which of the following is the journal entry to be made at the time of the loan repayment?

The entry to collect cash on account involves a

Which of the following accounts would not be found on the credit side of a trial balance?

Palladia Publishing paid $450 for an advertisement that will appear in today's newspaper.Which of the following is the journal entry to record this transaction?

Given the following complete list of balances,what will be the total credits in the trial balance,assuming no errors exist in the accounts? Note: The accounts payable records were damaged by a flood,and the company is not certain what the correct balance should be. 1. Retained Earnings \ 28,000 2. Merchandise Inventory 9,000 3. Accumulated Depreciation 5,000 4. Sales 42,000 5. Selling Expenses 11,000 6. Accounts Receivable \ 7,000 7. Cost of Goods Sold 22,000 8. Accounts Payable ? 9. Cash 5,000 10. Equipment 33,000

The Income Summary account

Sharpington,Inc.manufactures and sells phone cases.The company sold a shipment of cases costing $5,000 to a customer for $8,000.The customer paid cash.Which of the following is the journal entry that Sharpington would make to record the sale of the shipment of cases?

Assets,expenses,and revenues have normal balances on the debit side of a T-account.

The SEC requires publicly held companies to file 10-K reports within ________ after the fiscal year ends.

Which of the following errors would a trial balance help the accounting staff to find?

Which of the following accounts are expected to have a credit normal balance? 1.Cash 2)Salary Expense 3)Retained Earnings 4)Accumulated Depreciation 5)Sales 6)Prepaid Rent 7)Accounts Payable

Publishing for Personnel,Inc.,received and paid its utility bill of $800.As the accountant,you would tell the bookkeeper to

Stile Paving Company had the following journal entries for each of the transactions described.Prepare the correcting entry needed for each transaction. a.A credit customer paid $200 to Stile Paving Company for the customer's outstanding balance.The journal entry made by the company was Cash 200 Sales 200 b.A repair was made on some equipment.The cost was supposed to be charged to Repair Expense.The journal entry made by the company was Equipment 550 Accounts Payeble 550 c.Depreciation for the current year was supposed to be $2,800,however the company made the following journal entry: Depreciation Expense 800 Equipment 800 d.Supplies were acquired on account for $1,300.The company made the following journal entry: Supplies 1,300 Accounts Receivable 1,300 e.The company paid $100 on account.The journal entry was: Accounts Receivable 100 Cash 100

Which of the following accounts is classified differently from the others in the list?

In a trial balance,the number of accounts that are debited do not have to equal the number of accounts that are credited,but the total dollar amount of the debits must equal the total dollar amount of the credits.

When expense accounts are closed,we credit each expense account.

Which of the following statements is true regarding attributes of the general ledger and the general journal?

Given the following transactions,what is the ending balance in the Cash account? 1.The owner started the company by investing $6,000 cash. 2)The company paid $1,200 for 6 months' rent in advance. 3)The company acquired $2,400 in merchandise inventory with one-half of the purchase on account. 4)The company sold merchandise inventory costing $1,500 for $3,100 on account.