Question 1

Journalize the following five transactions for Nexium & Associates,Inc.Omit explanations.

Accepted Answer

The answer of Journalize the following five transactions for Nexium...

Question 2

A trial balance is prepared to

Accepted Answer

A) prove that there were no errors made in recording transactions into the journal 
B) prove that no errors were made in posting to the ledger 
C) prove that each account balance is correct 
D) discover errors that affect the equality of debits and credits 
A) prove that there were no errors made in recording transactions into the journal 
B) prove that no errors were made in posting to the ledger 
C) prove that each account balance is correct 
D) discover errors that affect the equality of debits and credits

Question 3

The bookkeeper for Brockton Industries prepared the following journal entries and posted the entries to the general ledger as indicated in the T accounts presented.Assume that the dollar amounts and the descriptions of the entries are correct.

Required:  If you assume that all journal entries have been recorded correctly, use the above information to:
1	Identify the postings to the general ledger that were made incorrectly.
2	Describe how each incorrect posting should have been made.

Accepted Answer

1 The bookkeeper incorrectly posted the

Question 4

For each of the following errors,considered individually,indicate whether the error would cause the trial balance tot to be unequal.If the error would cause the trial balance totals to be unequal,indicate whether the debit or credit total is higher and by how much.
A.Payment of a cash dividend $6,800 was journalized and posted as a debit of
$8,600 to Salaries Expense and a credit of $8,600 to Cash.
B.A fee of $9,780 earned was debited to Accounts Receivable for $7,980 and credited to Fees Earned for $9,780.
C.A payment of $3,000 to a creditor was posted as a credit of $3,000 to Accounts Payable and a credit of $3,000 to Cash.

Accepted Answer

a.	The totals are equal.
b.	Th

Question 5

Which of the following applications of the rules of debit and credit is true?

Accepted Answer

A) decrease Prepaid Insurance with a credit and the normal balance is a credit 
B) increase Accounts Payable with a credit and the normal balance is a debit 
C) increase Equipment with a debit and the normal balance is a debit 
D) decrease Cash with a debit and the normal balance is a credit 
A) decrease Prepaid Insurance with a credit and the normal balance is a credit 
B) increase Accounts Payable with a credit and the normal balance is a debit 
C) increase Equipment with a debit and the normal balance is a debit 
D) decrease Cash with a debit and the normal balance is a credit

Question 6

Transactions are listed in the journal chronologically.

Accepted Answer

A) True 
 B)False

Question 7

Of the following,which is true about assets?

Accepted Answer

A) Assets include both physical and intangible items. 
B) Assets include only physical items. 
C) Assets are the personal property of the stockholders of the company. 
D) Assets are the result of selling products or services to customers. 
A) Assets include both physical and intangible items. 
B) Assets include only physical items. 
C) Assets are the personal property of the stockholders of the company. 
D) Assets are the result of selling products or services to customers.

Question 8

Richardson Company has a condensed income statement as shown. $\begin{array}{|l|r|r|}
\hline & \text { Year 2 } & {\text { Year } 1} \
\hline \text { Sales } & \$ 150,000 & \$ 165,500 \
\hline \text { Total operating expenses } & 133,000 & 147,500 \
\hline \text { Net income } & 17,000 & 18,000\
\hline
\end{array}$ 
Using horizontal analysis,calculate the amount and percent change for sales.Round to one decimal place.

Accepted Answer

A) $17,000,11.3% 
B) $15,500,10.3% 
C) $18,000,10.9% 
D) $15,500,9.4% 
A) $17,000,11.3% 
B) $15,500,10.3% 
C) $18,000,10.9% 
D) $15,500,9.4%

Question 9

Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.

Accepted Answer

A) True 
 B)False

Question 10

The right hand side of a T account is known as a debit and the left hand side is known as a credit.

Accepted Answer

A) True 
 B)False

Question 11

The T account got its name because it resembles the letter "T."

Accepted Answer

A) True 
 B)False

Question 12

The normal balance of a stockholders' equity account is a debit.

Accepted Answer

A) True 
 B)False

Question 13

The process of transferring the debits and credits from the journal entries to the accounts is called

Accepted Answer

A) sliding 
B) transposing 
C) journalizing 
D) posting 
A) sliding 
B) transposing 
C) journalizing 
D) posting

Question 14

The accounts in the ledger of Monroe Entertainment Co.are listed below.All accounts have normal balances. $\begin{array}{lclr}
\text { Accounts Payable } & \$ 1,500 & \text { Fees Earned } & \$ 3,600 \
\text { Accounts Receivable } & 1,800 & \text { Insurance Expense } & 1,300 \
\text { Prepaid Insurance } & 2,000 & \text { Land } & 3,000 \
\text { Cash } & 3,200 & \text { Wages Expense } & 1,400 \
\text { Dividends } & 1,200 & \text { Common Stock } & 8,800
\end{array}$ Prepare a trial balance.The total of the debits is

Accepted Answer

A) $13,900 
B) $11,200 
C) $12,700 
D) $9,700 
A) $13,900 
B) $11,200 
C) $12,700 
D) $9,700

Question 15

In the chart of accounts,each account number has two digits.The first digit indicates the major account group to which the account belongs.Which of the following correctly identifies the major account groups typically represented by the numbers 1 through 5?

Accepted Answer

A) 1-Assets,2-Liabilities,3-Stockholders' Equity,4-Expenses,5-Revenues 
B) 1-Assets,2-Liabilities,3-Stockholders' Equity,4-Revenues,5-Expenses 
C) 1-Assets,2-Stockholders' Equity,3-Revenues,4-Expenses,5-Dividends 
D) 1-Stockholders' Equity,2-Dividends,3-Revenues,4-Expenses 
A) 1-Assets,2-Liabilities,3-Stockholders' Equity,4-Expenses,5-Revenues 
B) 1-Assets,2-Liabilities,3-Stockholders' Equity,4-Revenues,5-Expenses 
C) 1-Assets,2-Stockholders' Equity,3-Revenues,4-Expenses,5-Dividends 
D) 1-Stockholders' Equity,2-Dividends,3-Revenues,4-Expenses

Question 16

The chart of accounts classifies the accounts to make identification of the accounts easier.Describe the numbering system businesses use in setting up the chart of accounts.

Accepted Answer

A chart of accounts is set up by assigni

Question 17

Accounts are records of increases and decreases in individual financial statement items.

Accepted Answer

A) True 
 B)False

Question 18

A chart of accounts is

Accepted Answer

A) the same as a balance sheet 
B) usually a listing of accounts in alphabetical order 
C) usually a listing of accounts in financial statement order 
D) used in place of a ledger 
A) the same as a balance sheet 
B) usually a listing of accounts in alphabetical order 
C) usually a listing of accounts in financial statement order 
D) used in place of a ledger

Question 19

Office supplies purchased by Janer's Cleaning Service on account were returned.Which of the following entries for Janer's Cleaning Service records this transaction?

Accepted Answer

A) Cash,debit; Office Supplies,credit 
B) Office Supplies,debit; Accounts Receivable,credit 
C) Accounts Payable,debit; Office Supplies,credit 
D) Office Supplies,debit; Accounts Payable,credit 
A) Cash,debit; Office Supplies,credit 
B) Office Supplies,debit; Accounts Receivable,credit 
C) Accounts Payable,debit; Office Supplies,credit 
D) Office Supplies,debit; Accounts Payable,credit

Question 20

The gross increases in stockholders' equity attributable to business activities are called

Accepted Answer

A) assets 
B) liabilities 
C) revenues 
D) expenses 
A) assets 
B) liabilities 
C) revenues 
D) expenses

Journalize the following five transactions for Nexium & Associates,Inc.Omit explanations.

A trial balance is prepared to

Which of the following applications of the rules of debit and credit is true?

Transactions are listed in the journal chronologically.

Of the following,which is true about assets?

Richardson Company has a condensed income statement as shown. Year 2 Year 1 Sales \ 150,000 \ 165,500 Total operating expenses 133,000 147,500 Net income 17,000 18,000 Using horizontal analysis,calculate the amount and percent change for sales.Round to one decimal place.

Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.

The right hand side of a T account is known as a debit and the left hand side is known as a credit.

The T account got its name because it resembles the letter "T."

The normal balance of a stockholders' equity account is a debit.

The process of transferring the debits and credits from the journal entries to the accounts is called

In the chart of accounts,each account number has two digits.The first digit indicates the major account group to which the account belongs.Which of the following correctly identifies the major account groups typically represented by the numbers 1 through 5?

The chart of accounts classifies the accounts to make identification of the accounts easier.Describe the numbering system businesses use in setting up the chart of accounts.

Accounts are records of increases and decreases in individual financial statement items.

A chart of accounts is

Office supplies purchased by Janer's Cleaning Service on account were returned.Which of the following entries for Janer's Cleaning Service records this transaction?

The gross increases in stockholders' equity attributable to business activities are called

Introduction to Accounting and Business

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley,internal Control,and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization,stock Transactions,and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 2: Analyzing Transactions

Journalize the following five transactions for Nexium & Associates,Inc.Omit explanations.

A trial balance is prepared to

Which of the following applications of the rules of debit and credit is true?

Transactions are listed in the journal chronologically.

Of the following,which is true about assets?

Richardson Company has a condensed income statement as shown. Year 2 Year 1 Sales \ 150,000 \ 165,500 Total operating expenses 133,000 147,500 Net income 17,000 18,000 Using horizontal analysis,calculate the amount and percent change for sales.Round to one decimal place.

Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.

The right hand side of a T account is known as a debit and the left hand side is known as a credit.

The T account got its name because it resembles the letter "T."

The normal balance of a stockholders' equity account is a debit.

The process of transferring the debits and credits from the journal entries to the accounts is called

In the chart of accounts,each account number has two digits.The first digit indicates the major account group to which the account belongs.Which of the following correctly identifies the major account groups typically represented by the numbers 1 through 5?

The chart of accounts classifies the accounts to make identification of the accounts easier.Describe the numbering system businesses use in setting up the chart of accounts.

Accounts are records of increases and decreases in individual financial statement items.

A chart of accounts is

Office supplies purchased by Janer's Cleaning Service on account were returned.Which of the following entries for Janer's Cleaning Service records this transaction?

The gross increases in stockholders' equity attributable to business activities are called

Introduction to Accounting and Business

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley,internal Control,and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization,stock Transactions,and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters