Below is a chart of accounts.Following is a series of transactions.Indicate for each transaction the accounts that should be debited and credited by inserting the proper account number in the space provided. $\begin{array} { l l } 111 \text { Cash } & 312 \mathrm { R } \text {. Andrews, Withdrawals } \\ 112 \text { Accounts Receivable } & 411 \text { Service Fees } \\ 121 \text { Office Equipment } & 511 \text { 5alaries Expense } \\ 211 \text { Accounts I ayable } & 512 \text { Rent Expene } \\ 311 \text { R. Andrews, Capital } & 513 \text { Advertising Expense } \end{array}$ \(\begin{array}{lll} \text { Debit}& \text { Credit}& \text { Transaction } \\ \underline{\quad\quad}&\underline{\quad\quad}& \text { 1. Purchased office equipment on account. } \\ \underline{\quad\quad}&\underline{\quad\quad}& \text { 2. Paid salaries for the week. } \\ \underline{\quad\quad}&\underline{\quad\quad}& \text { 3. Invested additional cash in the business.}\\ \underline{\quad\quad}&\underline{\quad\quad}& \text { 4. Received cash for services performed. } \\ \underline{\quad\quad}&\underline{\quad\quad}& \text {5. Billed a client on account for services performed } \\ \underline{\quad\quad}&\underline{\quad\quad}& \text { 6. Paid accounts payable.}\\ \underline{\quad\quad}&\underline{\quad\quad}& \text { 7. Collected accounts receivable.} \\ \underline{\quad\quad}&\underline{\quad\quad}&\text { 8. Withdrew cash for personal use. } \\ \underline{\quad\quad}&\underline{\quad\quad}& \text { 9. Paid advertising expense. } \\ \underline{\quad\quad}&\underline{\quad\quad}& \text { 10. Paid rent expense for the month. } \\ \end{array}\)

The answer of Below is a chart of accounts.Following is...

A) Dr.(debit) B) Cr.(credit) A) Dr.(debit) B) Cr.(credit)

Exam 2: Debits and Credits: Analyzing and Recording Business Transactions

Number the following types of accounts (1-6)as they would appear on the Trial Balance. Assets Capital Revenue Liabilities Withdrawals Expenses

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Question 1

Correct Answer:

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$\begin{array}{llcc} \underline{\quad1\quad}& \text { Assets } \\ \underline{\quad3\quad}&\text { Capital } \\\underline{\quad5\quad}& \text {Revenue } \\ \underline{\quad2\quad}&\text { Liabilities} \\\underline{\quad4\quad}& \text { Withdrawals } \\ \underline{\quad6\quad}&\text { Expenses } \\\end{array}$

A transaction that involves more than one credit or more than one debit is called a compound entry.

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Question 2

Correct Answer:

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True

What would be the effect on accounts if the business purchased office supplies for cash?

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Question 3

Correct Answer:

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D

Below is a chart of accounts.Following is a series of transactions.Indicate for each transaction the accounts that should be debited and credited by inserting the proper account number in the space provided. 111 Cash 312 . Andrews, Withdrawals 112 Accounts Receivable 411 Service Fees 121 Office Equipment 511 5alaries Expense 211 Accounts I ayable 512 Rent Expene 311 R. Andrews, Capital 513 Advertising Expense Debit Credit Transaction 1. Purchased office equipment on account. 2. Paid salaries for the week. 3. Invested additional cash in the business. 4. Received cash for services performed. 5. Billed a client on account for services performed 6. Paid accounts payable. 7. Collected accounts receivable. 8. Withdrew cash for personal use. 9. Paid advertising expense. 10. Paid rent expense for the month.

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Question 4

___ 10.Supplies

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Question 5

___ 8.Rent Expense

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Question 6

A compound entry is when more than one transaction occurs.

(True/False)

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Question 7

The left column of a financial statement is often used to:

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Question 8

A credit to an asset account was posted to a liability account.This error would cause:

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Question 9

Double-entry accounting requires transactions to affect two or more accounts,and the total of the debits and credits must equal.

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Question 10

Office Supplies had a normal starting balance of $75.There were debit postings of $80 and credit postings of $60 during the month.The ending balance is:

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Question 11

___ 7.Accounts Payable

(Multiple Choice)

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Question 12

A T account is used for demonstration purposes.

(True/False)

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Question 13

Net income or net loss for a period is calculated by the following formula:

(Multiple Choice)

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Question 14

Why is Revenue increased on the Credit side? (Explain as it pertains to the expanded accounting equation and its relationship to Owner's Equity.)

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Question 15

Withdrawals increase on the debit side of the account.

(True/False)

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Question 16

The beginning balance in Cash was $3,500.Additional cash of $2,000 was received.Checks were written totaling $2,500.The cash balance is:

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Question 17

An account is said to have a debit balance if:

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Question 18

The business bought supplies on account.To record this:

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Question 19

Which of the following is not a financial statement?

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Question 20

Exam 2: Debits and Credits: Analyzing and Recording Business Transactions

Number the following types of accounts (1-6)as they would appear on the Trial Balance. Assets Capital Revenue Liabilities Withdrawals Expenses

A transaction that involves more than one credit or more than one debit is called a compound entry.

What would be the effect on accounts if the business purchased office supplies for cash?

___ 10.Supplies

___ 8.Rent Expense

A compound entry is when more than one transaction occurs.

The left column of a financial statement is often used to:

A credit to an asset account was posted to a liability account.This error would cause:

Double-entry accounting requires transactions to affect two or more accounts,and the total of the debits and credits must equal.

Office Supplies had a normal starting balance of $75.There were debit postings of $80 and credit postings of $60 during the month.The ending balance is:

___ 7.Accounts Payable

A T account is used for demonstration purposes.

Net income or net loss for a period is calculated by the following formula:

Why is Revenue increased on the Credit side? (Explain as it pertains to the expanded accounting equation and its relationship to Owner's Equity.)

Withdrawals increase on the debit side of the account.

The beginning balance in Cash was $3,500.Additional cash of $2,000 was received.Checks were written totaling $2,500.The cash balance is:

An account is said to have a debit balance if:

The business bought supplies on account.To record this:

Which of the following is not a financial statement?

Accounting Concepts and Procedures

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes: The Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, plant, equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, dividends, treasury Stocks, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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