Exam 2: Accounting for Business Transactions

On January 1 of the current year,Jimmy's Sandwich Company reported total stockholders' equity of $122,500.During the current year,total revenues were $96,000 while total expenses were $85,500.Also,during the current year the company paid $20,000 in dividends.No other changes in equity occurred during the year.The change in total equity during the year was:

Unearned revenues refer to a(n):

Centurion Co.had the following accounts and balances at December 31: Using the information in the table,calculate the company's reported net income for the period.

A credit:

All of the following statements accurately describe the debt ratio except.

The accounting process begins with:

Which financial statement reports an organization's financial position at a single point in time?

Identify the statement that is incorrect.

Explain the debt ratio and its use in analyzing a company's financial condition.

Which of the following is NOT an equity account:

Identify the statement below that is incorrect.

Andrea Apple opened Apple Photography on January 1 of the current year.During January,the following transactions occurred and were recorded in the company's books: 1.Andrea invested $13,500 cash in the business in exchange for common stock. 2.Andrea contributed $20,000 of photography equipment to the business. 3.The company paid $2,100 cash for an insurance policy covering the next 24 months. 4.The company received $5,700 cash for services provided during January. 5.The company purchased $6,200 of office equipment on credit. 6.The company provided $2,750 of services to customers on account. 7.The company paid cash of $1,500 for monthly rent. 8.The company paid $3,100 on the office equipment purchased in transaction #5 above. 9.Paid $275 cash for January utilities. -Based on this information,the amount reported as total stockholders' equity on the balance sheet at month-end would be:

Which of the following is not one of the four steps of processing transactions?

A revenue account normally has a debit balance.

Jose Consulting paid $500 cash for utilities for the current month.Determine the general journal entry that Jose Consulting will make to record this transaction.

Describe the link between a business's income statement,the statement of \]retained earnings,and the balance sheet.

During the month of February,Rubio Services had cash receipts of $7,500 and cash disbursements of $8,600.The February 28 cash balance was $1,800.What was the February 1 beginning cash balance?

The process of transferring general journal entry information to the ledger is called:

Using the following list of accounts and identification letters A through J,enter the type of account and its normal balance into the table below.The first item is filled in as an example:

You decrease the Accounts Payable account on the ________ side of its account.