Exam 2: Recording Business Transactions

Every accounting transaction involves an increase in at least one account and a decrease in at least one other account.

The entry to record the purchase of office supplies for $100 cash would be: \( \begin{array}{lcc}\text {

Accounts receivable normally has a credit balance.

If the debit amount of an entry to record the purchase of supplies on account was not posted:

In the journal you will find the total balance for each account.

A debit increases the balance of which types of accounts?

Which of the following business events may not be recorded in a company's general ledger?

A trial balance is:

What is the first step in the journalizing process?

The purchase of office equipment on account would increase an asset and decrease a liability account.

In accounting,the process of posting is:

Notes Payable is a typical example of a liability account.

Which of the following items of information would not normally be included in a journal entry?

Given the following transactions for Clip Corporation,prepare a trial balance as of March 31,2017. a.Owner invested $15,250 cash and $6,500 worth of equipment into the business received common shares in return. b.Purchased supplies on account,$450. c.Rented office space paying one months rent,$850. d.Performed services for a customer on account,$1,400. e.Purchased a truck by paying $1,000 down and signing a note for the remainder of $8,500. f.Performed services for a customer and immediately collected $800 cash. g.Paid employees salaries of $1,200. h.Owner received a dividend of $500.

The normal balance of the Accounts Payable account is a ________ because it is a(n)________ account.

Accounts payable normally has a debit balance.

The account credited when supplies are purchased on account is:

A trial balance that is "in balance" proves:

The normal balance of an expense account is a ________ while the normal balance of a revenue account is a ________.

Assets,owners' equity,and expenses are all increased by debits.