Exam 2: Recording Business Transactions

The entry to record the payment of $895 salary to employees would be: \( \begin{array}{lcc}\text {

The entry to record $500 received from a customer for services provided to that customer today would be:

Prepare a Statement of Retained Earnings for the year ended June 30,2017. Chedacorn was incorporated on July 1,2015 by 10 shareholders who each invested $100,000 in cash in exchange for common shares.Chedacorn's year end is June 30th.In its first year of business Chedacorn had a net income of $243,750.For its years ended June 30,2016 and 2017,its second and third years of operation,Chedacorn reported net income of $472,500 and $560,000 respectively.In its first year Chedacorn did not pay any dividends,but in fiscal 2016 it paid $62,500 in dividends and in 2017 it paid $100,000 in dividends.

A transaction involving the cash purchase of equipment will decrease one asset account and increase another asset account.

Interest payable,income tax payable and salary payable are all examples of:

The payment of expenses should be recorded with a credit to:

Describe the journalizing process including its steps.

When the trial balance is out of balance due to a transposition error,the difference between total debits and total credits will be evenly divisible by 9.

The entry to record an owner investment of $1,500 into the business including a $500 piece of equipment would be: \( \begin{array}{lcl}\text {

The trial balance is the starting point for preparing the organization's financial statements.

A chronological record (or history)of an entity's transactions is called a(n):

A balance sheet is organized in order of the accounting equation,with liabilities first,followed by assets and shareholders' equity.

Dividends paid to the shareholders when declared will:

A chart of accounts is:

The payment of salaries to employees when earned would:

Performing services on account would:

Place a checkmark in the appropriate column to show whether the event is recorded as a debit or a credit

Post the following journal entries to the appropriate T-accounts,and show the resulting balance in each account.

All revenue accounts normally have a credit balance.

A record of all the changes in a particular asset during a period of time is found in a(n):