Exam 2: Accounting for Business Transactions

The credit purchase of a new oven for $4,700 was posted to Kitchen Equipment as a $4,700 debit and to Accounts Payable as a $4,700 debit.What effect would this error have on the trial balance?

Identify the statement below that is correct:

Identify the account below that is classified as a liability in a company's chart of accounts:

List the steps in processing transactions.

Increases in liability accounts are recorded as debits.

A customer's promise to pay on credit is classified as an account payable by the seller.

The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.

Web Consulting received $3,000 from a customer for services provided.The general journal entry to record this transaction will be:

________ requires that each transaction affect,and be recorded in,at least two accounts.It also means that total amounts debited must equal total amounts credited for each transaction.

Cloud Solutions had the following accounts and balances as of December 31: Using the information in the table,calculate the total assets reported on the balance sheet for the period.

Jay's Limo Services paid cash dividends of $100.Which of the following general journal entries will Jay's Limo Services make to record this transaction?

Jackson Brown Footwear had total liabilities of $127.5 million and total assets of $375 million.Its debt ratio was ________.

Select the account below that normally has a credit balance.

The four categories of equity accounts are ________,________,________,and ________.

Sanders Co.has total assets of $385 million.Its total liabilities are $100.1 million and its equity is $284.9 million.Calculate its debt ratio.

Which of the following statements is not true:

After preparing an (unadjusted)trial balance at year-end,R.Chang of Chang Window Company discovered the following errors: 1.Cash payment of the $225 telephone bill for December was recorded twice. 2.Cash payment of a note payable was recorded as a debit to Cash and a debit to Notes Payable for $1,000. 3.A $900 cash dividend was recorded to the correct accounts as $90. 4.An additional investment of $5,000 cash by a stockholder was recorded as a debit to Common Stock and a credit to Cash. 5.A credit purchase of office equipment for $1,800 was recorded as a debit to the Office Equipment account with no offsetting credit entry. Using the form below,indicate whether the error would cause the trial balance to be out of balance by placing an X in either the yes or no column.

________ is the process of transferring journal entry information from the journal to the ledger.

The purchase of land and buildings will generally be recorded in the same ledger account.

A company provided $12,000 of consulting services on account.The customer promises payment in 30 days.Identify the journal entry below that properly records this transaction.