Exam 2: Recording Business Transactions

The purchase of office supplies for cash would include a debit to the asset Office Supplies and a credit to the asset Cash.

The normal balance of a liability account is a ________ and the normal balance of the common shares account is a ________.

Which element of an accounting system provides information about the balance in each account?

Given a random list of accounts with their normal balances,prepare a trial balance for Sable Ltd.as of December 31,2017.List the accounts in the appropriate order.

A ledger is the first place where transactions are recorded in the accounting system.

The left side of a T-account is always the side that increases the balance of the account.

Analyze the following transactions.Indicate which accounts are affected and whether they will increase or decrease.Transaction (a)is completed as an example. a.Owner investment of cash into the business. b.Payment of a utility bill. c.Purchase of inventory for cash. d.Payment of an accounts payable. e.Performing a service on account. f.Collecting cash from a customer as payment on his account.

An organization's list of all its accounts and the related account numbers is called a:

The purchase of a building with a cash down payment and a written promise to pay the balance in the future would include a:

When a company purchases inventory on account (that is,on credit),which type of account is credited to record the transaction?

The normal balance of an expense account is a ________ because expenses decrease ________.

The account called Accrued Liabilities is really an expense account and not a liability account.

A chart of accounts is:

For each of the following independent scenarios,fill in the blanks with the appropriate dollar amount.

Identify the normal balance for the Retained Earnings account and expense accounts.What is the reasoning behind the "normal balances" for these accounts?

The costs of operating a business are usually called:

Prepare journal entries in good form for the following transactions at Snacktime Corp.: a.Jill (owner)invested cash of $25,000 receiving common shares in exchange. b.Purchased inventory on credit,for $9,000. c.Paid $3,000 for rent of the Snack shop. d.Received $4,700 for services rendered.

State the increase side (debit or credit)for each of the following accounts. a.Inventory b.Retained earnings c.Cash d.Accounts Payable e.Dividends f.Land g.Supplies h.Common Shares i.Service Revenue j.Accounts Receivable

Assets include cash,land,and accounts payable.

The accounting transaction to record payment of the heating bill would include a: