Exam 2: Analyzing Transactions

Selected accounts from the ledger of Garrison Company appear below. For each account, indicate the following: a. In the first column at the right, indicate the nature of each account, using the following abbreviations: b. In the second column, indicate the increase side of each account by inserting Dr. or Cr.

The chart of accounts for the Corning Company includes the following: Page 3 of the journal contains the following entry: -What is the posting reference that will be found in the cash account?

All of the following statements regarding a horizontal analysis are true except:

For the following, mark a “D” if the following account normally has a debit balance and mark a “C” if the following account normally has a credit balance. -----1. Notes Payable -----2. Mortgage Payable -----3. Dividends -----4. Accounts Receivable -----5. Common Stock -----6. Rent Revenue -----7. Unearned Income -----8. Utility Expense -----9. Automobiles

The payment for the monthly rent will require which of the following entries?

Accounts in the ledger are usually maintained in alphabetical order.

Which of the following is true about T accounts?

The erroneous moving of an entire number one or more spaces to the right or left,such as writing $85 as $850,is called a transposition.

Which of the following entries records the payment of a bill for your insurance premium?

Which of the following accounts would be increased with a credit?

Which of the following entries records the payment of insurance for the current month?

In the chart of accounts,the balance sheet accounts are normally listed in which order?

A client has a massage and asks the company bookkeeper to mail her the bill.The bookkeeper should make which entry to record the invoice?

Accounts

On August 30,JumpStart incurred the following expenses: Payment to the landlord for August rent,$2,300 Payment to the Gas & Electric Company for August's bill,$525 Payment of employee wages for the last half of August,$1,750 Payment of shopping center's parking lot cleaning fee,$275 Journalize these payments as one compound journal entry.

McNally Industries has a condensed income statement as shown. Year 2 Year 1 Sales \ 198,000 \ 165,500 Total operating expenses 163,000 147,500 Net income 35,000 18,000 Using horizontal analysis,calculate the amount and percent change for sales.Round to one decimal place.

On January 31,the cash account balance was $96,750.During January,cash receipts totaled $305,000 and cash payments totaled $375,880.Determine the cash balance on January 1.

Which of the following entries records the payment of an account payable?

Which of the following entries records the acquisition of office supplies on account?

Answer the following questions for each of the errors listed below,considered individually: a. Did the error cause the trial balance totals to be unequal? b. What is the amount of the difference between the trial balance totals where applicable? c. Which of the trial balance totals,debit or credit,is the larger where applicable? Present your answers in columnar form,using the following headings: Error Totals Difference in Totals Larger of Totals Errors: 1. A dividend of $3,000 cash to shareholders was recorded by a debit of $3,000 to Salary Expense and a credit of $3,000 to Cash. 2. A $650 purchase of supplies on account was recorded as a debit of $1,650 to Equipment and a credit of $1,650 to Accounts Payable. 3. A purchase of equipment for $3,450 on account was not recorded. 4. A $870 receipt on account was recorded as a $870 debit to Cash and a $780 credit to Accounts Receivable. 5. A payment of $1,530 cash on account was recorded only as a credit to Cash. 6. Cash sales of $8,500 were recorded as a credit of $8,500 to Cash and a credit of $8,500 to Fees Earned. 7. The debit to record a $4,000 cash receipt on account was posted twice; the credit was posted once. 8. The credit to record a $300 cash payment on account was posted twice; the debit was posted once. 9. The debit balance of $7,400 in Accounts Receivable was recorded in the trial balance as a debit of $7,200.